This week's global central bank agenda undoubtedly centers on the decision-making of the Bank of Japan. According to Bloomberg, the market widely expects the decision-making committee led by Bank of Japan Governor Kazuo Ueda to raise interest rates by 25 basis points at this Friday's monetary policy meeting, bringing the benchmark rate up to 0.75%.

This will be the first rate hike since January of this year. A Bloomberg survey shows that all Japanese central bank observers surveyed expect a rate increase this month.
In addition, Japan's November CPI data will be released next Friday. The market expects core CPI year-on-year to remain at a high of 3.0%, paving the way for a rate hike by the central bank.
According to Reuters, citing sources, the Bank of Japan may maintain its commitment to rate hikes this week, with the pace of increases depending on how the economy responds to each hike.
The market has already largely digested the upcoming rate hike. The latest survey indicates that 90% of economists predict the Bank of Japan will raise rates by 25 basis points at the meeting on December 18-19, with market pricing showing about a 90% probability of a December rate hike to 0.75%.
Investors' focus has shifted from simply whether to raise rates to guidance from Governor Kazuo Ueda on the future path. Nomura Securities, in its research report, analyzed that Ueda is expected to emphasize that real interest rates remain at very low levels, which means the central bank will not send a dovish signal that the rate hike cycle is ending, but will keep the specific path ambiguous to maintain policy flexibility.