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June 16 – The 68th meeting of the Standing Committee of the 14th National People's Congress (NPC) was held on the morning of June 16 at the Great Hall of the People in Beijing. Chairman Zhao Leji presided over the meeting. The meeting decided that the 23rd session of the Standing Committee of the 14th NPC will be held in Beijing from June 23 to 26. The meeting recommended that the 23rd session of the Standing Committee of the 14th NPC deliberate on the State Council's proposals regarding the draft revisions to the Bidding and Tendering Law, the draft Financial Law, the draft revisions to the Law of the People's Bank of China, and the draft decision authorizing the Hong Kong Special Administrative Region to exercise jurisdiction over the Hong Kong side of the Huanggang Port and related extended areas.

According to The Information: DeepSeek has completed a record funding round of over $7 billion, valuing the company at over $50 billion.

The yield on Japan's 5-year government bonds rose 5 basis points to 1.915%.

The Central Bank of Ukraine projects foreign aid of $53 billion this year, $42 billion in 2027, and $22 billion in 2028.

On June 16th, Takashi Fujiwara, Chief Fund Manager at Resona Asset Management, stated that the Bank of Japan's (BOJ) statement explicitly indicated that short- and medium-term real interest rates are negative. This could mean the BOJ does not want ultra-long-term bond yields to rise further. Simultaneously, this could also be a signal from the BOJ that if short- and medium-term interest rates remain low, businesses can easily raise funds and potentially expand into higher-risk sectors. The BOJ discussed the economy and prices side-by-side in its statement. This could indicate the BOJ's willingness to raise interest rates further. Even if the opening of the Strait of Hormuz slows price increases, the BOJ can still use economic growth as justification for raising interest rates.

On June 16th, the Reserve Bank of Australia (RBA) kept interest rates unchanged at 4.35%, stating that despite tightening financial conditions and a slowing economy, it warned that further rate hikes were possible if necessary to control inflation. The RBA stated that inflation remained high and that it would take all necessary measures to curb it, "including raising the cash rate target further if necessary." Markets had previously bet on a hold, as domestic inflation, consumption, and employment data continued to weaken; while the Middle East peace agreement and the reopening of the Strait of Hormuz led to lower oil prices, reducing inflation risks. The committee stated in its statement: "The resolution of the Middle East conflict remains in its early stages, and there are reasonable scenarios in which inflation is higher than expected under the May baseline forecast, while economic activity is lower than expected. The global oil supply issue will take time to resolve, which will continue to exert upward pressure on global energy prices and inflation." The unanimous decision was largely in line with expectations. Swap markets indicated that the probability of an RBA rate hike in August was about 30%, and the total rate hikes for the year would be only 16 basis points, equivalent to less than one rate hike.

On June 16th, Tohru Sasaki, chief strategist at Fukuoka Financial Group and a former Bank of Japan official, stated that a minor surprise was the scale of Japanese government bond purchases. The market had expected the purchase scale to remain largely unchanged after April next year, but it was actually slightly reduced and will remain unchanged thereafter. Therefore, this differs slightly from market consensus. However, the focus is on how Bank of Japan Deputy Governor Shinichi Uchida will articulate future monetary policy. Uchida needs to proceed cautiously at this press conference. It will be very difficult for him to express any major shifts in future policy. Therefore, I believe the market may interpret Uchida's press conference as a dovish signal. The Ministry of Finance may intervene on the day of the Bank of Japan's interest rate hike due to the continued weakness of the yen. Looking ahead, I believe the health of Bank of Japan Governor Kazuo Ueda is crucial. If he needs to be replaced for health reasons, his successor will likely be a dovish governor.

June 16 – The Reserve Bank of Australia (RBA) kept its key interest rate unchanged for the first time this year, given that the previous three rate hikes had begun to put pressure on the Australian economy. On Tuesday, all nine members of the committee unanimously voted to keep the cash rate at 4.35%, in line with expectations. RBA Governor Bullock will hold a press conference later, and investors will be watching to see if policymakers will enter a prolonged pause or continue their tightening stance. In its statement, the RBA said, “The cash rate target has been raised three times since the beginning of the year, and current financial conditions are tighter than before, with signs of an economic slowdown emerging as expected.” This pause in rate hikes marks a softening of the RBA’s aggressive tightening policy, which had previously made it stand out among major central banks. While policymakers continue to warn that inflation remains too high and that high energy costs related to the war with Iran pose upside risks, recent weaker data has provided the central bank with room to hold its position and assess the situation.

June 16 – On the morning of June 16, President Xi Jinping held talks with Myanmar President Min Aung Hlaing, who was on a state visit to China, at the Great Hall of the People in Beijing. Xi Jinping pointed out that President Min Aung Hlaing has long been a friend of China. Last year, we met twice and exchanged in-depth views on strategic and directional issues concerning China-Myanmar relations. I am willing to continue to strengthen guidance with you, carry forward the fraternal friendship, deepen comprehensive strategic cooperation, promote the building of a China-Myanmar community with a shared future to achieve more results, bring more benefits to the people of both countries, and make greater contributions to regional peace and development.

Reserve Bank of Australia: Signs of economic slowdown are emerging as expected after the 2026 rate hike.

Reserve Bank of Australia: The impact of high oil prices on goods and services is becoming apparent.

The Reserve Bank of Australia (RBA) stated that the global oil supply problem will take some time to resolve, which will continue to put upward pressure on global energy prices and inflation.

The Reserve Bank of Australia: The committee remains focused on ensuring that inflation does not become entrenched after the shock of high oil prices subsides.

Reserve Bank of Australia: Inflation is likely to remain high for some time.

The Reserve Bank of Australia (RBA) says financial conditions have tightened this year due to three increases in the cash rate target.

Reserve Bank of Australia: Significant uncertainty remains regarding domestic economic activity and the inflation outlook.

Reserve Bank of Australia: Short-term inflation expectations have eased somewhat, but remain higher than at the beginning of the year.