Japan’s currency may face continued downward pressure if policymakers move too slowly on interest rate hikes, according to the head of the Asian Development Bank . Rate Gap with US Driving Yen Weakness ADB President Masato Kanda highlighted that the wide interest rate differential between Japan and the US remains the key driver behind yen weakness. Investors continue to favour the US dollar due to higher yields The Bank of Japan risks being seen as “behind the curve” on inflation As a result, the yen struggles to strengthen even when global risk sentiment improves . BOJ’s Slow Response Raises Market Concerns Despite inflation hovering around target levels for years, the BOJ has maintained a cautious policy stance to avoid damaging Japan’s fragile economic recovery. However, markets may react negatively if: The BOJ delays rate hikes further Investors lose confidence in Japan’s poli...
Treasury secretary-general Tan Sri Mohd Irwan Siregar Abdullah said Prime Minister Datuk Seri Najib Razak is set to announce the revisions to Budget 2016 on January 28.
He assured the press and the public that the government will not cut the salaries of two million civil servants in the tweaks.
"The prime minister will announce the revised budget on January 28... let’s wait for his announcement to see what the details are," he said at the launch of the World Bank's office in Kuala Lumpur today.
The revision was necessary as the current economic climate had changed significantly from when the Budget 2016 was tabled. Back then, the oil was $48 per barrel but the oil price has now fallen to below US$33 per barrel.
The Ringgit has also weakened compared to back then.
He assured the press and the public that the government will not cut the salaries of two million civil servants in the tweaks.
"The prime minister will announce the revised budget on January 28... let’s wait for his announcement to see what the details are," he said at the launch of the World Bank's office in Kuala Lumpur today.
The revision was necessary as the current economic climate had changed significantly from when the Budget 2016 was tabled. Back then, the oil was $48 per barrel but the oil price has now fallen to below US$33 per barrel.
The Ringgit has also weakened compared to back then.
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