Archive

September 23, 2025
SE.png

Riksbank Cuts to 1.75%, Signals Pause

  • Surprise rate cut to 1.75% reflects weak growth trumping temporary inflation concerns; policy likely on hold "for some time".
  • Fiscal stimulus of SEK 80bn for 2026 supports the outlook but creates inflation uncertainty via supply-demand imbalance.
  • The projected terminal rate is now reached, with the next move potentially a rate hike before the end of 2026.
September 19, 2025
JP.png

BOJ Policy Shift Despite Rate Hold

  • The BOJ held rates at 0.5% with a 7-2 vote. Hawkish dissent from Takata and Tamura voting for 0.75% signals rising tightening pressure within the board.
  • Surprise ETF/J-REIT disposal announcement (¥330bn/¥5bn annually) marks a significant normalisation step despite external trade headwinds.
  • Core inflation at 2.7% remains above target. Overall, October rate hike expectations rise to 55% after the hawkish tone despite the hold decision.

By country