State Street APAC economist Krishna Bhimavarapu said stronger economic
resilience and rising inflation suggest several central banks may be entering a
synchronized tightening cycle. He said the Bank of Japan appears ready to lift
its policy rate toward the psychological 1.0% mark and could signal a second
hike this year. The Reserve Bank of Australia looks likely to pause as growth
and labor‑market momentum weakens, but persistent inflation leaves scope for at
least one more move later in the year. Bhimavarapu expects the Federal Reserve
to shift toward a more hawkish stance by the end of this week.
