Monetary Policy

OUTLOOK 2026

MAS has breathing room to react to sudden shocks in 2026: economists

Tariffs, fading AI chip demand or a sharper-than-forecast global slowdown could prompt looser policy – but tightening is possible too

Kazuo Ueda’s policy board is widely expected to raise its benchmark rates by a quarter percentage point to 0.75% at the end of the two-day meeting on Friday.

BOJ is set to raise benchmark rates to highest level since 1995

Japan’s first female prime minister has refrained from criticising Ueda’s plans to dial back monetary easing as she prioritises the inflation fight

RBNZ governor Anna Breman said the central bank "would maintain a laser focus on (its) core mandate" of low and stable inflation.

New Zealand central bank says policy path not preset, guided by inflation outlook

[WELLINGTON] New Zealand’s top central banker said on Wednesday (Dec 10) that there was no preset course for monetary policy and that adjustments would be made if the outlook for inflation changed.

The world’s second-largest economy is on track to reach this year’s growth target of around 5%, but faces headwinds from a prolonged property slump, weak consumer demand, excess factory capacity in some sectors and declines in infrastructure-led investment.

China pledges to expand demand with more proactive policies in 2026

The Politburo’s remarks point to a high Budget deficit, debt issuance and additional rate cuts next year to reach a growth target likely to remain at around 5%: analysts

Federal Reserve Governor Christopher Waller said a December cut will “provide additional insurance” against an acceleration in labour market weakening, adding that he backs another 25 basis points reduction.

US Fed official backs further rate cut due to weak job market

Fed Governor Christopher Waller made the remark at a London dinner

Atlanta Federal Reserve President Raphael Bostic’s exit marks the second departure this year of a hawkish voice at the Fed.

Bostic announces retirement amid Trump push for more influence over Federal Reserve

[WASHINGTON] Atlanta Federal Reserve President Raphael Bostic, the first Black and openly gay person to lead one of the US central bank’s 12 regional banks, said on Wednesday he will retire at the end...

There is no sign that we should expect a major twist in the labour picture when official jobs data is finally released.
THE BOTTOM LINE

Case for Fed pause mounts

Unless there is a major surprise in the delayed data about to be released, the case for the third interest rate cut of the year is weakening fast

Japan's Prime Minister Sanae Takaichi also said she would not rule out a cut to Japan’s sales tax as a future option.

Japan PM flags watered-down fiscal goal in push to lift growth

[TOKYO] Japanese Prime Minister Sanae Takaichi said on Monday (Nov 10) that she would work on setting a new fiscal target extending through several years to allow more flexible spending, essentially w...

The package will focus on measures to cushion the blow to households from rising living costs, investment in crisis management and growth areas, as well as steps to boost Japan’s defence capabilities, the draft of the outline showed.

Japan’s stimulus plan to urge BOJ focus on boosting growth, draft outline shows

[TOKYO] Japan’s government will urge the central bank to focus on achieving strong economic growth accompanied by stable prices in an outline of its stimulus package, a draft of the outline seen by Re...

Federal Reserve Bank of Cleveland President Beth Hammack said she estimates inflation won’t reach the Fed’s 2 per cent target until a year or two after 2026, similar to the median estimate of the Fed’s 19 policymakers.

Federal Reserve’s Hammack says inflation a bigger concern than labour market

FEDERAL Reserve Bank of Cleveland President Beth Hammack said monetary policy should continue putting downward pressure on inflation, which she says is too high and remains a bigger risk for the US ce...