Core Viewpoint - The Governor of the Bank of Japan, Kazuo Ueda, indicated that if economic and price trends align with forecasts, the central bank will continue to raise policy interest rates to support improvements in the economy and prices [1] Group 1 - The Bank of Japan is closely monitoring economic and price developments to inform its monetary policy decisions [1] - There is a clear intention from the Bank of Japan to adjust interest rates in response to economic conditions [1] - The statement reflects a proactive approach to monetary policy aimed at fostering economic stability and growth [1]

Core Viewpoint - The European Central Bank (ECB) cannot further lower the policy interest rate [1] Summary by Relevant Categories - **Monetary Policy** - The ECB's governing council member Vujcic stated that there is no room for further downward adjustments to the policy interest rate [1]

Core Viewpoint - The Bank of Japan is considering further increases in policy interest rates based on improvements in economic activity and price expectations [1] Summary by Relevant Categories Economic Activity - A member of the Bank of Japan indicated that if economic activity meets expectations, the central bank will continue to raise policy rates [1] Price Expectations - The decision to adjust interest rates will also depend on the improvement in price expectations alongside economic activity [1]

Core Viewpoint - The Federal Reserve Governor Bowman indicates that it is time to consider adjusting the policy interest rates [1] Group 1 - The current economic conditions suggest a reassessment of interest rate policies is necessary [1] - Governor Bowman emphasizes the importance of responding to evolving economic indicators [1]

Core Viewpoint - The Central Bank of Turkey will cautiously adjust its policy interest rates [1] Group 1 - The Central Bank emphasizes a careful approach to modifying interest rates to ensure economic stability [1]

Core Viewpoint - The Norwegian central bank indicates economic uncertainty but suggests that if the economy develops in line with current forecasts, the policy interest rate will be further lowered during 2025 [1] Group 1 - The economic outlook is described as uncertain, highlighting potential volatility in future economic conditions [1] - The central bank's current assessment implies a cautious approach to monetary policy, with a focus on adapting to economic developments [1] - The forecasted reduction in the policy interest rate signals a potential easing of monetary policy in response to economic conditions [1]

Core Viewpoint - The Bank of Japan may continue to adjust its policy interest rates while cautiously assessing whether core inflation can stabilize around 2% [1] Group 1 - The Bank of Japan is considering further adjustments to its monetary policy [1] - There is a focus on evaluating core inflation trends and their potential stability [1] - The target for core inflation is set at approximately 2% [1]

Core Viewpoint - The recent adjustment of deposit rates by major state-owned banks, which has a larger decline than the Loan Prime Rate (LPR), indicates a strategic move to alleviate internal pressures and prepare for potential economic fluctuations [1][5][10]. Summary by Sections Deposit Rate Adjustments - On May 20, 2025, major state-owned banks lowered various deposit rates, with the 1-year and 5-year fixed deposit rates reduced by 15 and 25 basis points respectively, while the LPR was only reduced by 10 basis points [2]. - The cumulative reduction in deposit rates since September 2022 has been greater than that of the LPR, with the 1-year and 5-year fixed deposit rates down by 80 and 145 basis points respectively, compared to the LPR's decline of 70 and 110 basis points [10]. Economic Context - The adjustments in deposit rates are influenced by external factors such as the easing of exchange rate constraints and progress in US-China trade negotiations, which have led to a stronger RMB [5]. - Internally, the need to balance net interest margins and the pressure on banks due to declining profitability, with the net interest margin dropping to a historical low of 1.33% in Q1 2025, has prompted these rate cuts [7]. Future Implications - The larger reduction in deposit rates compared to the LPR creates room for potential further rate cuts, which may be necessary to address economic volatility and insufficient demand, particularly in investment [10]. - The current economic environment, characterized by fluctuating tariffs and their impact on corporate investment and local finances, necessitates a proactive approach to monetary policy [10].

Core Viewpoint - The Federal Reserve, represented by Daly, indicates that there is ample time to patiently wait before making adjustments to policy interest rates, suggesting a gradual approach to any changes [1] Group 1 - The Federal Reserve has the capacity to gradually adjust policy interest rates [1] - There is currently sufficient time for the Federal Reserve to remain patient regarding interest rate changes [1]