Lates News

Olivier Darcy, Chief Investment Decision Researcher for SimCorp Asia-Pacific, stated that central banks do not take any risks in their actions. Therefore, when faced with external shocks such as Liberation Day tariffs, the COVID-19 pandemic, or similar events, they tend to temporarily step back and pause their actions, saying "we need data." We saw the Fed take this hedge measure last night, and it appears that the Bank of Japan is also taking a similar approach. After the situation calms down this year, the Bank of Japan may continue to raise interest rates. However, the market does not agree with the Bank of Japan's policy of limiting long-term bond yields through bond purchases. The yen has been punished due to the Bank of Japan's restriction on long-term bond yields. Whether it is the Fed meeting, Bank of Japan meeting, or European Central Bank meeting, there is much greater disagreement than before. This precisely reflects the lack of confidence in the data.