Bank of Japan to Review Monetary Easing Tools

The Bank of Japan (BOJ) is set to release findings on its unconventional monetary easing tools after its final policy meeting of the year on December 18-19, indicating a potential shift from its long-standing stimulus measures. Governor Kazuo Ueda has not confirmed whether interest rates will be raised from the current 0.25%, leaving markets uncertain about the timing of any hikes. Analysts note that the review may provide insights into the effectiveness of past policies and guide future monetary strategies, particularly as Japan continues to combat deflation. Meanwhile, the U.S. dollar has gained slightly against the yen, with market expectations for a December rate hike remaining at 54%. The outlook for U.S. rates remains mixed, especially after recent hawkish comments from Federal Reserve Chair Jerome Powell, as traders anticipate comments from several Fed officials this week. Key inflation data from the UK and Canada, as well as upcoming results from Nvidia, are also being closely monitored for their potential market impact.