Bank of Japan continues policy normalisation

The Bank of Japan is expected to proceed with its monetary policy normalisation efforts, signaling a shift away from its long-standing ultra-loose stance. This move comes despite potential inflationary pressures stemming from geopolitical tensions, specifically the situation in Iran. The central bank's decision reflects a growing confidence in the domestic economy's resilience and its ability to withstand external shocks. Investors and markets will be closely monitoring future communications and actions from the BoJ as it navigates this delicate balance between supporting growth and managing inflation risks.