Macro economy around the world during the holiday week 12/19 - 12/25

Following last week's policy meeting, the Bank of Japan (BOJ) shocked financial markets with its policy adjustment decision yield curve control (YCC), instead of joining the “QT club” with other central banks. The bond and forex markets suffered the heaviest impact from this BOJ decision. 

In addition, as analyzed in Viet Hustler's market article, US Q3/2022 GDP was revised upward for the second time. Signs that the US economy remains resilient will further provide opportunities for the Fed to stay hawkish next year. While the US is gradually controlling inflation, the ECB is still struggling in the battle to stabilize prices. The continent experienced quite a few economic and political instabilities right in the week before Christmas.

Finally, China, under pressure to reopen after the Zero Covid policy, is still seeing uncontrolled high case numbers. Last week, China's Central Economic Work Conference also took place. 

This week's macro economy article from Viet Hustler will provide readers with a full overview of the global economy ahead of Christmas and the end of 2022.  

Japan: BOJ yield curve control (YCC), forex and bond markets heavily impacted