Both the Reserve Bank of Australia and the Bank of Japan announced on Tuesday decisions to keep interest rates unchanged. After a two-day policy meeting the BOJ pushed back the time frame for hitting its 2 percent inflation target and kept interest rates at 0.1 percent. The BOJ did note that the weaknesses in the export and trade sectors could remain for some time, but it maintained its stance of non-engagement barring any unforeseen economic catastrophes. Japan’s economy expanded for the second straight quarter in Q2, but the analysts predict a slowdown for the rest of the year due to low global demand and weak exports.
The RBA kept rates at a record low, explaining that it expects inflation to remain low for some time and that the country’s economic recovery is continuing at a healthy pace towards next year’s target.
More from Tuesday’s Reporting
Data out from Asia on Tuesday showed a growth in Taiwan’s manufacturing sector, the largest growth in two years, and the country’s fifth consecutive month of increased output. South Korea’s purchasing manager’s index (PMI), on the other hand, contracted or the third consecutive month. Factory output in Malaysia and Indonesia also decreased in October. Manufacturing data from the U.S. and Europe are expected later today.
Oil prices eased off one-month lows during Tuesday’s Asian session after OPEC was seen to be nearing a consensus about curbing output. U.S. WTI futures were up to $46.96, up 10 cents after falling 4 percent on Monday’s session. Brent prices were up as well, to $49.80 per barrel.