China's appetite for gold is showing no signs of slowing down. The world's largest bullion market imported around 173 tonnes of gold in June, marking the highest monthly import level since March 2024 and extending gains for the third consecutive month. The surge comes after international gold prices corrected sharply from their early-2026 highs, encouraging investors to buy the dip. A stronger Chinese yuan also made overseas gold purchases more affordable, while commercial banks accelerated imports before a new licensing regime took effect.


China's Gold imports hit highest level since 2024 

Why does it feel like central bank interest rate hikes have little immediate effect on your wallet or the broader economy? In economics, this is known as the "transmission lag"—a complex, structural delay between a policy decision made in a boardroom and its eventual impact on prices, employment, and growth.

The Slow Burn of Central Bank Policy | Why Rate Hikes Takes Years to Bite

China’s gold demand is accelerating at a rapid pace as global geopolitical uncertainty and ongoing war risks push investors and central banks toward safe-haven assets. Gold imports have surged to their strongest levels in a year, while official reserves continue climbing to record highs. This trend reflects a broader shift in global asset allocation, where central banks are increasing diversification away from traditional currencies amid rising financial instability.


China’s Gold Imports And Central Bank Buying Rising Sharply 

The probability of an April rate hike by major global central banks looks unlikely. But for the European Central Bank, markets are pricing a 0.25 percent hike by June and at least one more later in 2026.

Central Bank Policy Will Depend on Oil Price 

The United States has eased key sanctions on the Central Bank of Venezuela, allowing limited financial transactions with major state-run institutions and reopening parts of Venezuela’s access to the global financial system. The move permits international transfers, foreign-exchange services and dollar-based operations that had been restricted for years.


US Eases Sanctions On Venezuela Central Bank | US Opens Venezuela Financial System

Central banks from Washington to Frankfurt are telling us they're in a good place. And they have a point, even if that seems wildly at odds with gestures at everything going on in the world. In this next report, we look at look what could drag policymakers out of their happy place this year, as we dive into another big week in markets.

For Central Banks, Can a Good Place Turn Bad? 

Global central banks are taking a cautious approach as inflation cools slowly and risks in financial markets persist. Analysts say policymakers see room to wait before making major moves, balancing economic growth with price stability.

Central Banks Stay Cautious as Global Risks Smolder

Türkiye’s economy is showing signs of stabilisation after years of extreme price pressures, but the recovery remains uneven and fragile.

Central Bank Expects Inflation to Ease Mid-2026

Iranian authorities say a government building was attacked in the southern city of Fasa amid a wave of protests driven by mounting economic pressure, while officials insist the unrest remains limited and under control.

Iran Appoints New Central Bank Governor | Provincial Governor's Office Vandalised 

The Reserve Bank of India (RBI) has cut its key repo rate by 25 basis points, bringing total cuts in 2025 to 125 bps, and signaled the possibility of further easing. To support India’s “goldilocks” economy, the RBI will also boost banking-sector liquidity by up to $16 billion. With inflation below target, these measures aim to stabilize growth amid widening trade deficits and currency pressures.


India Central Bank Cuts Key Rate, Boosts Liquidity to Support 'Goldilocks' Economy

Central banks manage a country’s money and keep its economy stable. But not all countries have a central bank. Some are tiny, some use another country’s money, and others manage their money differently. Let’s learn about seven countries without central banks.

<p>Central banks manage a country’s money and keep its economy stable. But not all countries have a central bank. Some are tiny, some use another country’s money, and others manage their money differently. Let’s learn about seven countries without central banks.</p>

7 countries that don’t have a central bank

Questions over the quality of recent data have left policymakers struggling to chart the right course. Economists, too, are finding it increasingly difficult to interpret numbers and predict the future path of the economy.


Central Bank Dilemma: Data Quality Concerns Leave Policymakers in a Fix 

<p>Global central banks representing economies that account for nearly two-fifths of global output are expected to keep interest rates steady in the coming week, as policymakers grapple with an uncertain outlook shaped by escalating trade disputes and renewed geopolitical instability.&nbsp;</p><p>With fresh tensions flaring between Israel and Iran and continuing disruptions from protectionist policies led by the US, central bankers appear to be exercising extreme caution.</p><p>Officials in the US, UK, Japan, Norway, and Brazil are among those expected to pause any immediate monetary shifts. The sentiment is mirrored by the Paris-based OECD (Organisation for Economic Co-operation and Development), which recently downgraded its global growth forecasts, citing intensifying trade tensions as a key driver of inflationary pressures and reduced investment activity.</p><h2><strong>US and Canada: Inflation jitters amid weak consumer demand</strong></h2><p>All eyes are on the US Federal Reserve, which will meet on Wednesday, just as President Donald Trump approaches his 150th day in office. The Fed is not expected to make any changes, given uncertainties over the long-term economic impact of the administration’s trade policies.&nbsp;</p><p>Recent data suggests a dip in May retail sales, particularly in automobile purchases, though underlying figures excluding autos and fuel may show slight improvement.</p><p>Also on the radar are housing starts and industrial production. Manufacturing output is expected to decline for a second consecutive month, reflecting a sector reeling from tariff-related unpredictability.</p><p>In Canada, the focus will shift to Prime Minister Mark Carney's efforts at the G-7 summit and the Bank of Canada’s policy deliberations. While the central bank held rates steady in its last meeting, it hinted at a possible cut if economic growth softens further. Key indicators such as April retail sales and migration data will be closely watched.</p><h2>Asia: Holding steady as risks mount</h2><p>Across Asia, most central banks are set to adopt a wait-and-see approach. The Bank of Japan, despite persistent inflationary struggles, is unlikely to change interest rates. Investors are instead watching for changes in its bond-buying operations, with many anticipating a deceleration.</p><p>Central banks in Indonesia, Taiwan, and China are also expected to maintain the status quo, the latter holding its loan prime rates steady. The Philippines may buck the trend with a modest rate cut of 25 basis points, driven by easing inflation.</p><p>China will release a broad set of economic data, including retail sales, industrial production, and employment. While industrial activity may show resilience due to frontloaded manufacturing, property investment is expected to remain weak.&nbsp;</p><p>Japan, meanwhile, will publish export and inflation data, both of which may reflect the toll of US trade policies.</p><p>In Israel, inflation is projected to have eased slightly in May. The country’s central bank has held rates at 4.5 per cent for over a year amid persistent regional instability.&nbsp;</p><h2><strong>Europe and Africa: Oil spike complicates BOE path</strong></h2><p>In the UK, the Bank of England (BOE) is anticipated to maintain rates at 4.25 per cent, even as inflation remains stubbornly above target at 3.4 per cent.&nbsp;</p><p>The recent spike in oil prices, triggered by Israel’s strike on Iran’s nuclear program, adds to inflation risks, complicating future rate-cut paths. Analysts predict a 7-2 vote in favour of keeping rates unchanged, with gradual easing likely in the months ahead.</p><p>The European Central Bank (ECB) will be active on the speaking circuit, with appearances from top officials including President Christine Lagarde. Economic sentiment and consumer confidence data from the eurozone may offer clues on business and consumer reactions to ongoing uncertainties.</p><p>Meanwhile, South Africa will release inflation data and a financial stability review, both likely to support the case for steady policy.</p><h2><strong>Latin America: Mixed outlooks amid local challenges</strong></h2><p>Brazil and Chile are also expected to hold rates, though inflation trends suggest differing paths ahead. After a recent favourable inflation report, Brazil’s central bank is likely to keep its benchmark rate at 14.75 per cent for now, holding off on further tightening.&nbsp;</p><p>Chile’s policymakers, facing a more subdued inflation environment, may keep rates at 5 per cent while signalling future easing.</p><p>Economic indicators from Colombia and retail data from Brazil will provide further insight into how resilient household demand remains in the face of global headwinds.</p><p>With policymakers digesting the impacts of trade disruptions and geopolitical shocks, most central banks are choosing to remain on hold. The prevailing sentiment across major economies is one of watchful inaction, as inflationary risks collide with concerns about slowing growth.&nbsp;</p><p>As the second half of the year unfolds, the pace and direction of monetary policy will largely depend on how global trade and security dynamics evolve.</p>

With fresh tensions flaring between Israel and Iran and continuing disruptions from protectionist policies led by the US, central bankers appear to be exercising extreme caution.

Global central banks representing economies that account for nearly two-fifths of global output are expected to keep interest rates steady in the coming week, as policymakers grapple with an uncertain outlook shaped by escalating trade disputes and renewed geopolitical instability. With fresh tensions flaring between Israel and Iran and continuing disruptions from protectionist policies led by the US, central bankers appear to be exercising extreme caution. Officials in the US, UK, Japan, Norway, and Brazil are among those expected to pause any immediate monetary shifts. The sentiment is mirrored by the Paris-based OECD (Organisation for Economic Co-operation and Development), which recently downgraded its global growth forecasts, citing intensifying trade tensions as a key driver of inflationary pressures and reduced investment activity. US and Canada: Inflation jitters amid weak consumer demand All eyes are on the US Federal Reserve, which will meet on Wednesday, just as President Donald Trump approaches his 150th day in office. The Fed is not expected to make any changes, given uncertainties over the long-term economic impact of the administration’s trade policies. Recent data suggests a dip in May retail sales, particularly in automobile purchases, though underlying figures excluding autos and fuel may show slight improvement. Also on the radar are housing starts and industrial production. Manufacturing output is expected to decline for a second consecutive month, reflecting a sector reeling from tariff-related unpredictability. In Canada, the focus will shift to Prime Minister Mark Carney's efforts at the G-7 summit and the Bank of Canada’s policy deliberations. While the central bank held rates steady in its last meeting, it hinted at a possible cut if economic growth softens further. Key indicators such as April retail sales and migration data will be closely watched. Asia: Holding steady as risks mount Across Asia, most central banks are set to adopt a wait-and-see approach. The Bank of Japan, despite persistent inflationary struggles, is unlikely to change interest rates. Investors are instead watching for changes in its bond-buying operations, with many anticipating a deceleration. Central banks in Indonesia, Taiwan, and China are also expected to maintain the status quo, the latter holding its loan prime rates steady. The Philippines may buck the trend with a modest rate cut of 25 basis points, driven by easing inflation. China will release a broad set of economic data, including retail sales, industrial production, and employment. While industrial activity may show resilience due to frontloaded manufacturing, property investment is expected to remain weak. Japan, meanwhile, will publish export and inflation data, both of which may reflect the toll of US trade policies. In Israel, inflation is projected to have eased slightly in May. The country’s central bank has held rates at 4.5 per cent for over a year amid persistent regional instability. Europe and Africa: Oil spike complicates BOE path In the UK, the Bank of England (BOE) is anticipated to maintain rates at 4.25 per cent, even as inflation remains stubbornly above target at 3.4 per cent. The recent spike in oil prices, triggered by Israel’s strike on Iran’s nuclear program, adds to inflation risks, complicating future rate-cut paths. Analysts predict a 7-2 vote in favour of keeping rates unchanged, with gradual easing likely in the months ahead. The European Central Bank (ECB) will be active on the speaking circuit, with appearances from top officials including President Christine Lagarde. Economic sentiment and consumer confidence data from the eurozone may offer clues on business and consumer reactions to ongoing uncertainties. Meanwhile, South Africa will release inflation data and a financial stability review, both likely to support the case for steady policy. Latin America: Mixed outlooks amid local challenges Brazil and Chile are also expected to hold rates, though inflation trends suggest differing paths ahead. After a recent favourable inflation report, Brazil’s central bank is likely to keep its benchmark rate at 14.75 per cent for now, holding off on further tightening. Chile’s policymakers, facing a more subdued inflation environment, may keep rates at 5 per cent while signalling future easing. Economic indicators from Colombia and retail data from Brazil will provide further insight into how resilient household demand remains in the face of global headwinds. With policymakers digesting the impacts of trade disruptions and geopolitical shocks, most central banks are choosing to remain on hold. The prevailing sentiment across major economies is one of watchful inaction, as inflationary risks collide with concerns about slowing growth. As the second half of the year unfolds, the pace and direction of monetary policy will largely depend on how global trade and security dynamics evolve.

<p>With fresh tensions flaring between Israel and Iran and continuing disruptions from protectionist policies led by the US, central bankers appear to be exercising extreme caution.</p>

Central banks set to hold rates amid trade disruptions, Central Asian tensions

<div>Global banking regulators agreed to focus more on understanding the financial risks posed by climate change on May 13, despite some opposition from the United States, Reuters reported.</div>
<div></div>
<div>The oversight body of the Basel Committee on Banking Supervision convened to review its climate-related financial risk initiatives and decided to prioritise understanding the financial impact of extreme weather events, according to a statement by the Bank for International Settlements.</div>
<div></div>
<div>This decision comes as policymakers in Europe and the US debate the role of climate change in central bank policy. In Europe, policymakers have doubled down on efforts to address climate-related risks, with the European Central Bank (ECB) making management of climate risks a key priority, while the US efforts have been scaled back.&nbsp;</div>
<div></div>
<div>The group of central bank governors and heads of supervision, which make up the oversight body of the Basel Committee on Banking Supervision, also plans to release a voluntary framework for climate-related financial risks for jurisdictions to consider.</div>
<div></div>
<div>While the Basel Committee has no international authority or enforcement powers, its work on climate sets international standards which have a strong influence on national rule-making.</div>
<div></div>
<h2><span>US takes a step back</span></h2>
<div></div>
<div>While European and British regulators are moving forward with integrating climate risks into bank supervision, the US regulators like the Federal Reserve have taken a more cautious approach.&nbsp;</div>
<div></div>
<div>Recently, the US has seen significant pushback, with US President Trump and other Republican leaders criticising climate-focused policies. In a notable move, the Fed withdrew from the Network of Central Banks and Supervisors for Greening the Financial System in January, and the US Treasury Department has also backed away from climate principles for banks.</div>
<div></div>
<div>Analysts predict that the US regulatory bodies, including the Federal Deposit Insurance Corporation, may follow suit and pull out of these joint climate agreements in the near future.</div>
<div></div>
<div>(<em>With inputs from agencies</em>)</div>

Business & Economy: The Basel Committee has placed a significant focus on evaluating the financial repercussions of extreme weather events in its climate risk strategies.

Global banking regulators agreed to focus more on understanding the financial risks posed by climate change on May 13, despite some opposition from the United States, Reuters reported. The oversight body of the Basel Committee on Banking Supervision convened to review its climate-related financial risk initiatives and decided to prioritise understanding the financial impact of extreme weather events, according to a statement by the Bank for International Settlements. This decision comes as policymakers in Europe and the US debate the role of climate change in central bank policy. In Europe, policymakers have doubled down on efforts to address climate-related risks, with the European Central Bank (ECB) making management of climate risks a key priority, while the US efforts have been scaled back. The group of central bank governors and heads of supervision, which make up the oversight body of the Basel Committee on Banking Supervision, also plans to release a voluntary framework for climate-related financial risks for jurisdictions to consider. While the Basel Committee has no international authority or enforcement powers, its work on climate sets international standards which have a strong influence on national rule-making. US takes a step back While European and British regulators are moving forward with integrating climate risks into bank supervision, the US regulators like the Federal Reserve have taken a more cautious approach. Recently, the US has seen significant pushback, with US President Trump and other Republican leaders criticising climate-focused policies. In a notable move, the Fed withdrew from the Network of Central Banks and Supervisors for Greening the Financial System in January, and the US Treasury Department has also backed away from climate principles for banks. Analysts predict that the US regulatory bodies, including the Federal Deposit Insurance Corporation, may follow suit and pull out of these joint climate agreements in the near future. (With inputs from agencies)

Global banking regulators commit to addressing climate risk work

In a historic move, Syria has appointed Maysaa Sabrine as the first female governor of its central bank. This appointment marks a significant step in gender equality within the country’s financial sector amidst ongoing economic challenges.

Syria Appoints Maysaa Sabrine as First Female Governor of Central Bank

Investors' attention has shifted to Friday's monetary policy meeting as traders prepare for the possibility of easing. The reserve bank of India is under pressure after growth data showed a moderating momentum in India's economic activities. Shares of banks have soared this week on speculation that the RBI will announce easing policies on Friday. Watch to know more!

Central Bank Action In India In Focus After Poor GDP Growth

After Donald Trump's landslide win,...Global central bankers are preparing for their worst fears to materialise. Trump's campaign promises suggest inflationary risks will rise. Rising cost of living is what major central banks have been fighting since the pandemic-led surge in inflation. So, will trump's march into the white house throw a wrench in the global easing cycle? Take a look at the next report for more on this...

Central Bankers' Inflation Fears Return

Libya's central bank has suspended all operations after its head of information technology was kidnapped in Tripoli. Musab Msallem was abducted from his home by an unidentified group. The bank has linked the incident to a previous siege on its headquarters and threats made to other executives.

Libya’s central bank shuts down operations

Russia's central bank hiked its key interest rate by 200 basis points to 18% on Friday, the highest level in more than two years, and vowed to continue tightening until inflation rates in an overheated economy come down.

Russia's Central Bank raises its key interest rates to 18%

Myanmar's central bank denied a U.N. report that the country's military government can still access money and weapons for its war against anti-coup forces, saying financial institutions under the bank's supervision followed prescribed procedures.

UN: Thailand helped Myanmar's weapons purchase

Myanmar slams UN report on weapon transactions

The demand for gold is surging worldwide. Institutional investors, retailers and Central Banks are increasingly turning to Gold. Why is this happening?

Gravitas | Why are Central Banks accumulating Gold?

<p>Pakistan's central bank has repaid $1 billion in Eurobonds, it said on Saturday, a scheduled payment ahead of the South Asian nation seeking a long-term bailout from the International Monetary Fund.<br />
<br />
The bond, launched in 2014 and repaid on Friday, was maturing this month.</p>

<p>"The payment was made to the agent bank for onward distribution to the bond holders," the central bank said in a statement. Islamabad has been struggling with a balance of payments crisis, record inflation and steep currency devaluation since an IMF standby arrangement averted a sovereign default.</p>

<p>Also Read |&nbsp;<a href="https://www.wionews.com/world/ukraine-crippled-by-russias-new-strategy-of-attacking-power-stations-710934">Ukraine ‘crippled’ by Russia’s new strategy of attacking power stations</a></p>

<p>Finance Minister Muhammad Aurangzeb is due to leave on Sunday for Washington to attend the IMF-World Bank spring meeting, where he will start negotiations for Pakistan's 24th long-term IMF bailout.</p>

<p>Also Read |&nbsp;<a href="https://www.wionews.com/world/suspected-islamist-rebels-kill-at-least-10-in-eastern-congo-710928">Suspected Islamist rebels kill at least 10 in eastern Congo</a></p>

<p>Aurangzeb briefed Prime Minister Shehbaz Sharif about the new IMF programme on Friday, the government said in a statement.</p>

<p><strong>Watch |&nbsp;<a href="https://www.wionews.com/videos/wests-increased-military-exchange-with-india-india-uk-to-have-joint-military-exercise-next-year-710949">West's increased military exchange with India, India-UK to have joint military exercise next year</a></strong></p>

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<p>The IMF standby arrangement of $3 billion Islamabad secured last summer expired on Thursday. Its final tranche of $1.1 billion is expected to be released after the multilateral lender's board meets later this month.</p>

<p>The two sides have spoken in recent weeks about negotiating the longer-term bailout to continue with necessary policy reforms to rein in deficits, build up reserves and manage soaring debt servicing.<br />
<br />
Pakistan is in discussions with the IMF for a potential follow-up programme, the IMF chief Kristalina Georgieva said on Thursday.</p>


Pakistan's central bank has repaid $1 billion in Eurobonds, it said on Saturday, a scheduled payment ahead of the South Asian nation seeking a long-term bailout from the International Monetary Fund.

Pakistan's central bank has repaid $1 billion in Eurobonds, it said on Saturday, a scheduled payment ahead of the South Asian nation seeking a long-term bailout from the International Monetary Fund. The bond, launched in 2014 and repaid on Friday, was maturing this month. "The payment was made to the agent bank for onward distribution to the bond holders," the central bank said in a statement. Islamabad has been struggling with a balance of payments crisis, record inflation and steep currency devaluation since an IMF standby arrangement averted a sovereign default. Also Read | Ukraine ‘crippled’ by Russia’s new strategy of attacking power stations Finance Minister Muhammad Aurangzeb is due to leave on Sunday for Washington to attend the IMF-World Bank spring meeting, where he will start negotiations for Pakistan's 24th long-term IMF bailout. Also Read | Suspected Islamist rebels kill at least 10 in eastern Congo Aurangzeb briefed Prime Minister Shehbaz Sharif about the new IMF programme on Friday, the government said in a statement. Watch | West's increased military exchange with India, India-UK to have joint military exercise next year × The IMF standby arrangement of $3 billion Islamabad secured last summer expired on Thursday. Its final tranche of $1.1 billion is expected to be released after the multilateral lender's board meets later this month. The two sides have spoken in recent weeks about negotiating the longer-term bailout to continue with necessary policy reforms to rein in deficits, build up reserves and manage soaring debt servicing. Pakistan is in discussions with the IMF for a potential follow-up programme, the IMF chief Kristalina Georgieva said on Thursday.

Pakistan repays $1 billion in Eurobonds, says central bank

Argentina’s central bank has cut its interest rate for the third time since president Javier Milei took office. Policymakers have lowered rates to 70% from 80%. Borrowing costs have fallen from 133% in December last year, when Milei took office.

Argentina's central bank lowers rates from 80% to 70%

For eight years, Japan's central bank has maintained negative interest rates, a policy aimed at stimulating a stagnant economy. This meant banks charged a fee to hold excess reserves, encouraging them to lend more. However, with inflation exceeding the bank of Japan's 2% target for over a year, a policy shift is imminent. The bank of japan is expected to raise rates as early as this week, marking the first hike since 2007. Watch to know more!

Japanese banks gear up for policy rate shift with training

Japanese Tech Giant Fujitsu has faced a major Cyber attack on its systems. The company has issued a statement cautioning that hackers might have accessed personal and customer data. Watch to know more!

Japanese Tech giant Fujitsu faces Cyberattack

Nigeria's inflation rate accelerated further in January and reached almost 30% in annual terms, driven by soaring food costs and the fall of the country's naira currency to record lows.

Nigeria's inflation rate reached 28 percent in January: Statistics bureau

After weeks of speculation surrounding her absence, Elvira Nabiullina, governor of Russia's central bank, reemerged in a televised meeting with President Vladimir Putin. The joint appearance was the first since Nabiullina cancelled engagements nearly a month ago. Watch to know more!

Russia's central bank chief makes first appearance since rumours

Turkiye has a new central bank governor. President Tayyip Erdogan has named deputy central bank governor Fatih Karahan as the new central bank governor.

Fatih Karahan appointed as central bank governor of Turkey

<p class="MsoNormal"><span lang="EN-GB">Asian markets rallied on Monday, with Japan taking the lead, propelled by the tech sector's enthusiasm for artificial intelligence (AI). The Nikkei surged to a fresh 34-year peak, up 8.3 per cent in January, fuelled by strong performances in chip stocks following Taiwan Semiconductor Manufacturing's optimistic profit outlook. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB">Chipmakers, including Nvidia and Advanced Micro Devices, reaped the benefits of the AI-driven rally. As investors brace for a week packed with central bank meetings, economic data releases, and corporate earnings, attention turns to results from Intel, IBM, Tesla, Netflix, Lockheed Martin, and others. The S&amp;P 500 and Nasdaq futures in the US showed marginal gains after reaching record highs last week. (Source: Reuters)<o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB">Amid the broader Asian rally, MSCI's broadest index of Asia-Pacific shares outside Japan rose by 0.3 per cent, rebounding from last week's downturn influenced by weakness in China's markets. China experienced a five-year low, sparking speculation about state funds supporting stocks. Despite concerns about China's economic stability, Beijing appears hesitant to implement aggressive stimulus measures. </span></p>

<p class="MsoNormal"><span lang="EN-GB">The Bank of Japan, meeting on Tuesday, is expected to maintain super-easy monetary policies, supported by a second consecutive month of slowing consumer prices. Analysts anticipate the central bank's cautious stance, awaiting the outcomes of the spring wage rounds before considering any tightening measures.<o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB">On the global stage, the European Central Bank (ECB) is set to meet on Thursday, expected to maintain its current stance amid recent hawkish commentary from top officials. While a March rate cut seems logical, the ECB's recent resistance makes a June cut more probable. Futures indicate a 76 per cent chance of a first cut in May, with 40 basis points of easing priced in by June. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB">Central banks in Canada and Norway are also scheduled to meet this week, with no anticipated changes to interest rates. In the United States, market expectations for a March cut from the Federal Reserve have decreased to 49 per cent, influenced by recent hawkish rhetoric. Attention now turns to US economic growth and core inflation data, which could shape the prospects for early easing.<o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB">Global financial markets witnessed a notable shift last week, with 10-year Treasury yields rising nearly 20 basis points to 4.13 per cent. This strengthened the dollar, reaching a five-week high against a basket of currencies. The dollar stood at 148.13 yen, having gained 2.2 per cent last week. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB">The euro held steady at $1.0893. Gold, a non-yielding asset, lost appeal at $2,028 an ounce in the face of rising yields. In the oil market, concerns about global demand offset tensions in the Middle East. Brent crude dipped to $78.33 a barrel, while US crude for January eased to $73.16 per barrel, reflecting ongoing uncertainties in the energy market.<o:p></o:p></span></p>

<p class="MsoNormal"><i><span lang="EN-GB" style="mso-fareast-language:EN-GB">(With inputs from Reuters)<o:p></o:p></span></i></p>


Asian markets rallied on Monday, with Japan taking the lead, propelled by the tech sector's enthusiasm for artificial intelligence (AI). The Nikkei surged to a fresh 34-year peak, up 8.

Asian markets rallied on Monday, with Japan taking the lead, propelled by the tech sector's enthusiasm for artificial intelligence (AI). The Nikkei surged to a fresh 34-year peak, up 8.3 per cent in January, fuelled by strong performances in chip stocks following Taiwan Semiconductor Manufacturing's optimistic profit outlook. Chipmakers, including Nvidia and Advanced Micro Devices, reaped the benefits of the AI-driven rally. As investors brace for a week packed with central bank meetings, economic data releases, and corporate earnings, attention turns to results from Intel, IBM, Tesla, Netflix, Lockheed Martin, and others. The S&P 500 and Nasdaq futures in the US showed marginal gains after reaching record highs last week. (Source: Reuters) Amid the broader Asian rally, MSCI's broadest index of Asia-Pacific shares outside Japan rose by 0.3 per cent, rebounding from last week's downturn influenced by weakness in China's markets. China experienced a five-year low, sparking speculation about state funds supporting stocks. Despite concerns about China's economic stability, Beijing appears hesitant to implement aggressive stimulus measures. The Bank of Japan, meeting on Tuesday, is expected to maintain super-easy monetary policies, supported by a second consecutive month of slowing consumer prices. Analysts anticipate the central bank's cautious stance, awaiting the outcomes of the spring wage rounds before considering any tightening measures. On the global stage, the European Central Bank (ECB) is set to meet on Thursday, expected to maintain its current stance amid recent hawkish commentary from top officials. While a March rate cut seems logical, the ECB's recent resistance makes a June cut more probable. Futures indicate a 76 per cent chance of a first cut in May, with 40 basis points of easing priced in by June. Central banks in Canada and Norway are also scheduled to meet this week, with no anticipated changes to interest rates. In the United States, market expectations for a March cut from the Federal Reserve have decreased to 49 per cent, influenced by recent hawkish rhetoric. Attention now turns to US economic growth and core inflation data, which could shape the prospects for early easing. Global financial markets witnessed a notable shift last week, with 10-year Treasury yields rising nearly 20 basis points to 4.13 per cent. This strengthened the dollar, reaching a five-week high against a basket of currencies. The dollar stood at 148.13 yen, having gained 2.2 per cent last week. The euro held steady at $1.0893. Gold, a non-yielding asset, lost appeal at $2,028 an ounce in the face of rising yields. In the oil market, concerns about global demand offset tensions in the Middle East. Brent crude dipped to $78.33 a barrel, while US crude for January eased to $73.16 per barrel, reflecting ongoing uncertainties in the energy market. (With inputs from Reuters)

Japan leads Asian stocks amid AI surge; global markets await Central Bank decisions

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">In a quarterly survey released on Monday by the Bank of Canada (BoC), Canadian businesses are grappling with a decline in order books, largely attributed to a slump in consumer spending caused by higher interest rates. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">This is based on a report by Reuters.<o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">The central bank revealed that despite rising concerns over wages, firms foresee a relief in inflation over the coming year. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">Reuters cited Royce Mendes, Head of Macro Strategy at Desjardins Group, who said, "Overall, businesses and consumers are feeling the pain of higher interest rates and are responding accordingly. Consumers are curtailing spending and businesses, seeing falling sales, are tapping the brakes on hiring."<o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">The survey reported that 38 per cent of businesses anticipate a recession in the next year, reflecting an increase from the previous quarter. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">Similarly, 61 per cent of consumers share concerns about an impending recession, a rise from the last survey. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">Businesses, compared to a year earlier, experienced a downturn in order books, with more firms expecting wages to rise in the upcoming year. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">However, a silver lining appears as many businesses still foresee an increase in sales volumes over the next 12 months.<o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">The business outlook indicator, a measure of economic sentiment, showed a slight improvement in the last quarter of 2023, rising from -3.45 to -3.15. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">This shift was attributed to easing expectations for input and output prices.<o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">39 per cent of businesses reported a decline in sales volumes over the past year, attributing it to various factors such as slowing growth, the impact of higher interest rates, and inflation. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">The Bank of Canada raised its key policy rate to 5 per cent, a 22-year high, last year, and has maintained it since July. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">Despite the current inflation rate of 3.1 per cent, down from the 2022 peak, it has remained above the BoC's 2 per cent target since March 2021.<o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">According to the survey, "Firms' pricing behaviour is slowly returning to normal," indicating a potential stabilisation in the economic landscape. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">However, wage growth is expected to be higher than average in the next 12 months, often tied to cost-of-living adjustments.<o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">Looking ahead, 54 per cent of businesses foresee inflation running higher than 3 per cent over the next two years, while 42 per cent expect it to remain below that threshold. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">Interestingly, 27 per cent predict it will take longer than four years for inflation to return to the BoC's 2 per cent target. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">Governor Tiff Macklem, in his last public appearance of 2023, noted that short-term inflation expectations are gradually trending downward, but the persistence is expected due to wage growth and the prices of commodities, food, and housing.<o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">The Bank of Canada is set to make its next interest rate announcement on January 24, with expectations of maintaining the key policy rate. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">Money markets and economists, however, anticipate rate cuts in the first half of 2024. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">The dual survey approach by the central bank also revealed that consumers do not anticipate further interest rate increases in the next year.<o:p></o:p></span></p>

<p class="MsoNormal"><i style="mso-bidi-font-style:normal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">(With inputs from Reuters)<o:p></o:p></span></i></p>


In a quarterly survey released on Monday by the Bank of Canada (BoC), Canadian businesses are grappling with a decline in order books, largely attributed to a slump in consumer spending caused by higher interest rates.

In a quarterly survey released on Monday by the Bank of Canada (BoC), Canadian businesses are grappling with a decline in order books, largely attributed to a slump in consumer spending caused by higher interest rates. This is based on a report by Reuters. The central bank revealed that despite rising concerns over wages, firms foresee a relief in inflation over the coming year. Reuters cited Royce Mendes, Head of Macro Strategy at Desjardins Group, who said, "Overall, businesses and consumers are feeling the pain of higher interest rates and are responding accordingly. Consumers are curtailing spending and businesses, seeing falling sales, are tapping the brakes on hiring." The survey reported that 38 per cent of businesses anticipate a recession in the next year, reflecting an increase from the previous quarter. Similarly, 61 per cent of consumers share concerns about an impending recession, a rise from the last survey. Businesses, compared to a year earlier, experienced a downturn in order books, with more firms expecting wages to rise in the upcoming year. However, a silver lining appears as many businesses still foresee an increase in sales volumes over the next 12 months. The business outlook indicator, a measure of economic sentiment, showed a slight improvement in the last quarter of 2023, rising from -3.45 to -3.15. This shift was attributed to easing expectations for input and output prices. 39 per cent of businesses reported a decline in sales volumes over the past year, attributing it to various factors such as slowing growth, the impact of higher interest rates, and inflation. The Bank of Canada raised its key policy rate to 5 per cent, a 22-year high, last year, and has maintained it since July. Despite the current inflation rate of 3.1 per cent, down from the 2022 peak, it has remained above the BoC's 2 per cent target since March 2021. According to the survey, "Firms' pricing behaviour is slowly returning to normal," indicating a potential stabilisation in the economic landscape. However, wage growth is expected to be higher than average in the next 12 months, often tied to cost-of-living adjustments. Looking ahead, 54 per cent of businesses foresee inflation running higher than 3 per cent over the next two years, while 42 per cent expect it to remain below that threshold. Interestingly, 27 per cent predict it will take longer than four years for inflation to return to the BoC's 2 per cent target. Governor Tiff Macklem, in his last public appearance of 2023, noted that short-term inflation expectations are gradually trending downward, but the persistence is expected due to wage growth and the prices of commodities, food, and housing. The Bank of Canada is set to make its next interest rate announcement on January 24, with expectations of maintaining the key policy rate. Money markets and economists, however, anticipate rate cuts in the first half of 2024. The dual survey approach by the central bank also revealed that consumers do not anticipate further interest rate increases in the next year. (With inputs from Reuters)

Canadian firms face decline in orders, inflation easing despite concerns: Central bank survey

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