TechFlow News, June 15: Krishna Bhimavarapu, Asia-Pacific Economist at State Street Global Advisors, stated that central banks globally may be entering a phase of synchronized interest rate hikes, supported by strengthening economic resilience and rising inflation. Bhimavarapu noted that the Bank of Japan appears poised to raise its policy rate to the psychologically significant level of 1.0%, adding that the BOJ may signal a second rate hike later this year.
By contrast, the Reserve Bank of Australia (RBA) appears likely to pause its hiking cycle, as both economic growth and labor market momentum have weakened. However, inflation remains unresolved, leaving room for at least one additional rate hike later this year. Additionally, Bhimavarapu expects the U.S. Federal Reserve to adopt a hawkish stance by the end of this week. (Jinshi)
