News

Here is what you need to know on Monday, November 10:

• Hopes for BOJ to guide monetary policy appropriately so Japan can sustainably achieve 2% inflation, that is not just driven by cost-push factors but also wage growth
• Hopes for BOJ to continue to work closely with the government on policy with an eye on economic, price, and financial developments
• Government holds final responsibility on economic policy and BOJ’s monetary policy is part of that
• But specific monetary policy path is up to the BOJ to decide

She’s not shying away from flexing her authority here, in making sure that the central bank knows their place so to speak. That especially after she spread her fiscal dove wings in pushing for more stimulus/spending. From earlier:

• Japan PM Takaichi to examine new govt fiscal target for future that looks at fiscal state
• Japan’s Takaichi abandons annual budget target, takes softer fiscal consolidation stance

This article was written by Justin Low at investinglive.com.

U.S. President Donald Trump recently described climate change as the “greatest con job ever perpetrated on the world.”

Takuji Aida, an economic adviser to Japan’s Prime Minister (PM) Sanae Takaichi, warned on Monday, “it would be quite risky for the Bank of Japan (BoJ) to raise interest rates in December.” 

The Indian Rupee (INR) trades flat against the US Dollar (USD) at open on Monday. The USD/INR pair consolidates around 88.80 as the US Dollar (USD) trades calmly on hopes that the United States (US) government shutdown will end soon.

Aida, who is also chief Japan economist at Credit Agricole, spoke to the Nikkei newspaper and said that: “It would be quite risky for the BOJ to raise interest rates in December.”

Adding that a December rate hike will run counter to the government’s plans to stimulate the economy with large-scale spending. Aida then argued that it would be more plausible for the BOJ to pursue a rate hike in January next year instead, that is also if the economy is forecast to post solid growth in the fiscal year 2026.

For some context, Japan prime minister Takaichi has set up a flagship panel to debate her administration’s growth strategy and Aida is one economist chosen to be part of that. So, the bias here tells you about how that team looks to be set up.

This article was written by Justin Low at investinglive.com.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, trades on a positive note around 99.65 during the Asian trading hours on Monday. The DXY edges higher amid hopes that the US government shutdown may end soon.