Bank of Japan Maintains Ultra-Easy Monetary Policy Amid High Uncertainties

The Bank of Japan (BOJ) is set to make a landmark move as it emerges from years of negative rates and ultra-loose policy, potentially raising rates sooner than expected. While no rate hike is expected on Tuesday, the BOJ's recent surprises in policy tweaks and interventions in the foreign exchange market have fueled speculation. The yen has been performing well against the dollar, appreciating almost 4% this month, which could help the BOJ in its fight to boost inflation but may hurt exports. Hedge funds have been shifting their positions on the yen ahead of the potential rate hike. In other news, the Reserve Bank of Australia will release the minutes of its last policy meeting, and Asian stocks fell on Monday after a surge last week following the U.S. Federal Reserve's indication that rate hikes are over.