Archive

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.

Sweden Unemployment Rate 9.2% (consensus 8.2%) in Mar-24

- Sweden's unemployment rate surged to 9.2% in Mar-24, surpassing the consensus estimate of 8.2%, marking the highest level since Jun-23.
- The current unemployment rate is 1.31 percentage points above the one-year average, signifying a significant deviation amid a worrying deterioration in the labour market.

Indonesia Policy Rate 6.25% (consensus 6.0%) in Apr-24

• Bank Indonesia unexpectedly raised the BI-Rate by 25bps to 6.25%, defying the consensus forecast as it aims to stabilize the Rupiah and curb inflation amid global financial uncertainties.
• The rate hike is a strategic response to external pressures and inflation risks, ensuring that inflation remains within the 2.5 ± 1% target range through preemptive monetary tightening.
• Despite the rate increase, Bank Indonesia maintains a pro-growth approach through supportive macroprudential policies and enhancements to the payment system, promoting economic expansion and financial system stability.

Australia CPI Inflation 3.6% y-o-y (consensus 3.4%) in Q1-24

- Australia's CPI inflation rate dropped by 0.5 percentage points to 3.6% y-o-y in Q1-24, but that still exceeded consensus expectations of 3.4%.
- The upside news was in underlying pressures as the weighted median held at 4.4%, and the trimmed mean disappointed by only slowing 0.2pp to 4%.