Key central bank commentary and Australian inflation figures may sway regional markets amid shifting rate hike expectations.
Bank of Japan Governor Ueda is set to speak today, following Deputy Governor Himino’s confirmation that the BOJ plans further policy rate hikes. Markets expect a 25-basis-point increase at the June 15-16 meeting, contingent on economic and inflation trends, as well as Middle East developments impacting Japan’s outlook.
Federal Reserve’s Neel Kashkari warned that persistent inflation from Middle East instability could prompt additional U.S. rate hikes. Meanwhile, Australia’s April CPI data will be closely watched after recent previews suggested potential upside surprises. The Reserve Bank of New Zealand is widely anticipated to hold its cash rate at 2.25%.
Traders are monitoring these events for clues on monetary policy trajectories, with bond yields and currency pairs likely to react to shifts in tone or data surprises.