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Colombia Policy Interest Rate 11.75% (consensus 11.75%) in Apr-24

• The Banco de la República Colombia’s unsurprising decision to reduce the policy interest rate by 50 basis points to 11.75% aims to bolster economic growth against a backdrop of declining inflation, with the central bank maintaining a careful balance to avoid overheating the economy.
• Updated economic projections suggest a recovery, albeit juxtaposed with a concerning uptick in unemployment rates, presenting a challenge for ongoing monetary policy adjustments.
• External economic pressures, particularly from US policy shifts and global financial market trends, remain pivotal in shaping the future trajectory of Colombia’s monetary policy, emphasizing the importance of adaptive strategies to navigate international uncertainties.

Japan Unemployment Rate 2.6% (consensus 2.5%) in Mar-24

- Japan's unemployment rate for March 2024 remained at 2.6%, slightly higher than consensus estimates, indicating a surprisingly stable labour market.
- The Jobs to Applications Ratio for the same month increased to 1.28, strengthening the already favourable environment for job seekers amid more job openings than applicants.

Vietnam CPI Inflation 4.4% y-o-y in Apr-24

- Vietnam's CPI inflation jumped by 0.4pp to reach 4.4% in April 2024, the highest level since January 2023.
- The inflation rate is 1.11 percentage points above the one-year average, indicating a renewed acceleration of inflationary pressures.

Japan Policy Rate 0.0% (consensus 0.0%) in Apr-24

• The BOJ has maintained its policy rate at 0.0-0.1%, consistent with market expectations, reflecting ongoing economic recovery with moderate inflation, set against a backdrop of global economic uncertainty.
• Future interest rate decisions will be influenced by global economic conditions, domestic economic performance, inflation trends, and financial market stability, with a vigilant approach towards any necessary adjustments to maintain economic growth and price stability.
• The central bank projects that the economy will continue to grow modestly above its potential. It expects CPI inflation to stabilize around 2% by fiscal 2025 and 2026, supported by government measures and favourable financial conditions.