world-economy

Bank of Japan Signals Rate Hike Ahead as Inflation Remains Stable

Japan's inflation measure stayed flat in May, supported by government energy subsidies that prevented price pressures from accelerating, positioning the Bank of Japan to proceed with a planned rate increase later this year.

The stability in the inflation gauge contrasts with divergent monetary policy signals emerging globally. The U.S. Federal Reserve held rates steady Wednesday under new Chairman Kevin Warsh while flagging a potential hike ahead. Chile's central bank broke from regional hawkish momentum this week, raising expectations for a rate cut within a year.

Brazil's central bank cut rates Thursday despite signaling deteriorating inflation conditions, prompting investors to question the decision's timing and triggering a sharp selloff in local assets.