BOJ prepares to increase bond buying if yields rise

Bank of Japan Governor Kazuo Ueda has indicated that the central bank is prepared to increase government bond purchases to stabilize markets in response to sharp rises in long-term interest rates. Japan's inflation has accelerated to 4%, driven by higher food prices, which may prompt the BOJ to consider more interest rate hikes this year. Economists predict that the BOJ will raise its benchmark interest rate to 0.75% by the third quarter, contingent on wage growth and economic conditions. Meanwhile, the Bank of Korea is expected to cut its policy rate to 2.75% to support its economy amid weak domestic demand. The Bank of Jamaica has opted to maintain its benchmark rate at 6.0% in light of global economic uncertainty, projecting domestic inflation to remain within target ranges. These developments highlight diverse monetary policy approaches among central banks in response to varying economic pressures.