MONEY MASTER

Japan has officially entered a new era of monetary policy and markets are paying attention. Key Points BOJ raises interest rate to 1% — highest since 1995 Marks a clear shift away from  ultra-loose policy era Signals  further policy normalisation ahead Bond purchases to remain steady until  April 2027 Decision passed  7-1 vote , showing broad support Meeting held  without Governor Kazuo Ueda  (hospitalised) Japan is no longer the world’s last ultra-low-rate holdout and that changes global capital flows. Why This Matters For years, Japan anchored global liquidity with: Near-zero interest rates Massive bond buying Cheap funding for global investors Now, that anchor is shifting. Higher Japanese rates = less global liquidity + potential capital rotation back to Japan Market Impact to Watch Yen:  Likely to strengthen over time Global bonds:  Upward pressure on yields Equities:  Possible volatility as cheap liquidity fades This could trigger an...

Singapore is increasingly likely to  tighten monetary policy , as rising energy costs from the Middle East conflict threaten to push inflation higher despite weakening growth. MAS Expected to Act Amid Rising Price Pressures The  Monetary Authority of Singapore  is widely expected to adjust policy at its upcoming review, with  15 out of 18 economists forecasting a tightening move . The shift comes as  imported inflation accelerates , driven by surging oil prices and higher logistics costs. Core inflation is projected at  1.9% , near the  upper bound of official forecasts , increasing pressure on policymakers to act. Unique Policy Tool: Currency Management Unlike most central banks, MAS uses the  Singapore dollar exchange rate  as its primary policy tool. Potential tightening measures include: Steepening the slope of the policy band Re-centering the band upward Or a combination of both The Singapore dollar has already been  strengthening t...

Japan’s government bond market is under pressure, with yields surging to multi-decade highs as  rising oil prices and geopolitical tensions  intensify inflation risks. Yields Spike to Nearly Three-Decade High Japan’s  10-year government bond yield climbed to 2.49% , its  highest level since 1997 , while the  5-year yield rose to 1.9% . The sharp move reflects growing concerns that  energy-driven inflation  will persist, following the escalation in the Middle East conflict and the US blockade of the  Strait of Hormuz . Energy Shock Hits Import-Dependent Japan As a major energy importer, Japan is particularly vulnerable to rising oil prices. The latest tensions linked to actions by  Donald Trump  have: Pushed oil prices higher Increased  import costs Added upward pressure on  consumer prices A weakening yen is compounding the situation, making imports even more expensive and amplifying inflation risks. Policy Outlook: Bank of Jap...

Singapore is exploring plans to expand its gold storage capacity as it seeks to position itself as a  major global bullion trading hub , targeting central bank reserves and institutional flows. Strategic Push Into Bullion Market Authorities are evaluating potential sites — including areas near  Changi Airport  — to enhance  vaulting infrastructure for gold storage , according to sources familiar with the discussions. The  Monetary Authority of Singapore  confirmed it is  considering the use of existing facilities for gold vaulting , though it stopped short of confirming expansion plans. The move aligns with Singapore’s broader ambition to strengthen its role in  precious metals trading and financial services . Targeting Central Banks and Institutional Demand A key objective is to attract  central banks , which collectively hold around  39,000 tonnes of gold , accounting for roughly  18% of global supply , according to the World Gold...

The Japanese yen stabilised after the  Bank of Japan (BOJ) kept interest rates unchanged , as markets balanced domestic policy signals against a  hawkish US Federal Reserve outlook  and rising global energy prices. Yen Steady Despite Policy Hold The yen strengthened slightly to around  ¥159.64 per US dollar , holding onto gains following the BOJ’s widely expected decision to  maintain its benchmark rate . However, currency movements remain volatile as investors weigh: Japan’s gradual policy normalisation path Continued strength in the  US dollar driven by higher US rates Oil Prices Add Pressure on Japan’s Inflation Japan faces increasing challenges from  surging oil prices , driven by escalating conflict in the Middle East. As a major  energy importer , higher crude prices are expected to: Lift inflation pressures Increase  import costs Complicate the BOJ’s policy decisions BOJ Still Seen on Path to Rate Hikes Despite holding rates, the BOJ i...

Ghana’s central bank is expected to  continue its monetary easing cycle , even as rising global energy prices from the Middle East conflict complicate the inflation outlook. Rate Cut Likely as Inflation Hits Multi-Decade Low Analysts surveyed expect the  Bank of Ghana to cut interest rates by 100 basis points to 14.5% , following January’s reduction from 18% to 15.5%. The move is supported by  inflation cooling to 3.3% , its  lowest level in nearly 30 years , giving policymakers room to stimulate the economy. Economists argue that  further easing is needed to support job creation and economic growth , particularly in key sectors of the economy. Energy Prices Pose New Inflation Risk However, the outlook is complicated by the  sharp rise in global oil prices  following the Iran conflict, which began in late February. Higher energy costs could  reignite inflationary pressures , especially for an import-dependent economy like Ghana. As a result, while...

Asian  equities  traded  cautiously  on  Monday  as  rising  geopolitical  tensions  in  the  Middle  East  pushed  oil  prices  above  US$100  per  barrel ,  complicating  the  global  inflation  outlook  and  forcing  central  banks  to  reconsider  the  pace  of  monetary  easing. Oil  Surge  Raises  Inflation  Concerns Crude  prices  climbed  amid  uncertainty  surrounding  shipping  routes  in  the  Strait  of  Hormuz ,  a  critical  global  energy  chokepoint.  Brent  crude  rose 1.5%  to  US$104.72  per  barrel ,  while  U.S.  West  Texas  Intermediate  gained 0.9%  to  US$99.60 . Reports  suggested  the  Trump...

  Executive View Singapore’s macro backdrop entering 2026 is  constructively stable . Growth has surprised to the upside, inflation remains contained, and policy credibility is intact. As a result, the  Monetary Authority of Singapore  (MAS)  is positioned to  remain on hold in the near term , preserving optionality rather than pre-committing to either easing or tightening. For investors, this environment supports  measured risk-taking , selective exposure to  Singapore equities and SGD assets , and a bias toward  policy-resilient sectors  rather than directional macro bets. Policy Anchor: Why MAS Can Stay Patient Singapore’s 2025 GDP growth of  4.8%  materially exceeded trend expectations, driven by: Sustained semiconductor and electronics demand AI-linked memory pricing strength Resilient regional trade flows At the same time,  core inflation near ~1%  sits comfortably within MAS’s tolerance band, reducing the need ...

  Big Picture (Why This Matters Locally) A sharp rally in the Japanese yen, renewed  intervention risks , and  gold breaking above US$5,000/oz  signal that global markets are firmly back in  risk-management mode . While the headlines are Japan-centric, the spillovers matter directly for  Malaysia’s currency, equity flows and sector positioning . Key Global Moves to Watch Japanese yen strengthened sharply  amid speculation of joint US–Japan intervention, following rate checks linked to the  Bank of Japan Gold surged past US$5,000/oz , driven by geopolitical stress (Greenland, Iran) and bond-market volatility US dollar weakened further  ahead of the  Federal Reserve  meeting Equity futures in the US and Japan softened, reinforcing a  near-term risk-off tone Malaysia-Focused Trading Takeaways 1. Ringgit: Supportive Bias, But Not a Straight Line A softer US dollar and yen strength are  generally supportive for the ringgit Howe...