Daofu Investment: Central banks of various countries may enter a period of rising interest rates again.

Krishna Bhimavarapu, the Asia-Pacific economist at Daofu Investment Management, stated that with resilient economic growth and rising inflation, central banks in various countries may be entering a synchronized phase of raising interest rates again. Bhimavarapu said that the Bank of Japan appears to be poised to raise rates to the key psychological level of 1.0%, and added that the Bank of Japan may signal its second rate hike of the year. In contrast, with both economic growth and labor market momentum weakening, the Reserve Bank of Australia is likely to hold steady. However, the unresolved inflation issue may open the door for at least one more rate hike later this year. Bhimavarapu anticipates that the Federal Reserve may conclude the week with a slightly hawkish turn.