The Bank of Japan is set to keep rates unchanged after raising them to 0.75%, the highest in 30 years. Governor Kazuo Ueda must navigate post-decision remarks carefully to prevent another yen selloff. Rising inflation and pressure to normalize rates may prompt an earlier hike, especially with the looming election.

In the US, personal income and spending data will be released, with core PCE price index expected to rise. Stable economic growth and rising inflation may lead the Fed to pause rate cuts. Additional data includes GDP estimates and the University of Michigan’s consumer sentiment index.

In Asia, central banks take the spotlight with the BOJ meeting and policy decisions in China, Indonesia, and Malaysia. China will release Q4 GDP data, while Taiwan and Japan will report trade figures and CPI, respectively. New Zealand’s CPI report follows aggressive rate cuts.

Europe, Middle East, and Africa will see key data releases in the UK, eurozone, and South Africa. Initial PMI readings, inflation data, and central bank decisions in Romania, Turkey, and Norway are on the agenda. Davos meetings will feature discussions on financial stability and policy outlooks.

Latin America will focus on Mexico’s inflation data and policy meeting, with analysts expecting a rate pause. Colombia will release GDP-proxy data, while Argentina’s GDP-proxy data may show economic challenges. Paraguay’s central bank will decide on rates after reporting lower-than-expected inflation.

Read more at Yahoo Finance: BOJ Keeps Yen Watchers on Edge for Rate-Hike Clues