The Bank of Japan has raised interest rates by 25 basis points to a 31-year high, a move anticipated due to rising inflation and a weak yen, with U.S. Treasury Secretary Scott Bessent urging decisive action from the BOJ. This follows the Federal Reserve's recent rate hike, despite pushback from the White House.
In contrast, the Bank of England has decided to maintain its current rates, although Governor Andrew Bailey warned that ongoing volatility could necessitate future hikes to control inflation.
As the focus shifts from monetary policy to geopolitical tensions, the United Nations General Assembly will convene, and President Trump is set to meet with President Xi Jinping, with trade tensions and AI discussions on the agenda. Additionally, key political events in Germany and Russia may influence market sentiment, particularly regarding domestic stability and economic conditions.
Lastly, shares of Japanese online marketplace Mercari experienced volatility following its restrictions on Pokémon card listings, reflecting the impact of trading disputes on investor confidence