International News 24 November 2025
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BOJ Signals Imminent Rate Hike as Hawkish Momentum Builds
The Bank of Japan is moving closer to raising interest rates and is unlikely to wait for next spring’s wage negotiations, according to board member Kazuyuki Masu, as reported by Nikkei. His comments follow Governor Kazuo Ueda’s recent hint that a rate hike could come as early as the December 18–19 policy meeting—reflecting growing consensus within the board. Masu stated that economic conditions for a rate increase are forming and emphasized that only severely negative data would delay the decision. Several board members, including Junko Koeda, have voiced support for near-term tightening, while two others previously pushed unsuccessfully for hikes in September and October. Despite maintaining its policy rate at 0.5% since January, the BOJ faces persistent inflation above the 2% target for more than three years, strengthening the case for normalization. Masu noted that keeping real interest rates negative risks fueling property price surges and other distortions. Although Prime Minister Sanae Takaichi traditionally supports low-rate policies, the new government has recently signaled tolerance for BOJ tightening to help stabilize the yen and curb import-driven inflation. Masu stressed the importance of communication with the government and said both sides now understand that the central bank is nearing its next policy move.
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Fed’s Williams Signals Possible Near-Term Rate Cut
New York Fed President John Williams said U.S. monetary policy remains “slightly restrictive,” indicating there is still room for interest rate cuts “in the near term” without jeopardizing the Fed’s 2% inflation target. His comments immediately shifted market expectations, pushing the probability of a 25 bps rate cut at the December 9–10 FOMC meeting toward 60%, up from earlier assumptions that the Fed would hold rates steady due to stubborn inflation. Williams acknowledged that recent progress on lowering inflation has “stalled,” but expects price pressures to ease as the impact of import tariffs filters through the economy. Labor market conditions are also cooling, with unemployment rising to 4.4% in September—similar to pre-pandemic levels. His remarks come amid ongoing internal debate within the Federal Reserve over whether a December rate cut is appropriate. Some regional Fed presidents argue that more convincing evidence of a sustained return to 2% inflation is needed before easing. However, Williams’ stance carries significant weight as he is the FOMC vice chair and a permanent voting member, making his signal a key indicator of where Fed policy may be heading next.
Gold Prices Slip as Rate-Cut Bets Surge on Dovish Fed Signals
Gold prices closed lower on Friday, with spot gold dipping 0.3% to $4,065.14/oz after initially falling more than 1%, while bullion posted a 0.5% weekly decline. December gold futures gained 0.5% to $4,079.5/oz, though still down 0.36% for the week. The market reacted to dovish comments from New York Fed President John Williams, who said rate cuts could still occur soon without jeopardizing inflation goals. Rate-cut expectations jumped sharply, with traders now pricing a 74% chance of a December cut, up from 40% the day before. Mixed labor data added complexity: nonfarm payrolls rose 119,000, beating forecasts, but unemployment climbed to a four-year high, reinforcing the case for potential easing. Despite dovish remarks from some officials, others like Dallas Fed President Lorie Logan maintained a hawkish stance, urging rates to remain elevated for now. Equity markets strengthened as rate-cut bets increased, a shift that analysts note could pressure gold if risk appetite continues to improve. Physical gold demand in key Asian markets remained subdued amid rate-driven volatility, further weighing on prices.