The Bank of Japan’s (BoJ’s) decision on interest rates and the preliminary GDP data from the US and Eurozone will be key releases in the remainder of the week.
The Australian dollar has hit a low of six weeks after the RBA’s Q1 2023 trimmed CPI mean missed expectations. It came in at 6.6% year-to-year.
Commenting on de-dollarization talks, analysts at Goldman Sachs suggested in a report that “we see no evidence of that in the data so far (for example, even Brazil’s rising share of CNY reserves replaced CAD, not the Dollar), and our strong view is that there is currently no real contender.”
BoJ Interest rate Decision
The BoJ’s governing board will convene on Friday to decide on interest rates. Economists anticipate that the BoJ will keep borrowing costs at current levels. This will be the BoJ’s first board meeting after Kazuo Ueda became the new BoJ Governor.
UOB Group analysts don’t expect the BoJ change its monetary strategy, at least not in this meeting. “We expect Ueda to carry out the unwinding in two broad steps: 1) A protracted period (Apr to Dec 2023) of forward guidance to prepare market for an orderly exit of BOJ’s ultra-easy monetary policy which may also involve a widening of the trading range of the 10-year JGB yield (to…
