International News 14 November 2025
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BOJ Balances Inflation Goals as Takaichi’s Fiscal Push Adds Policy Strain
Bank of Japan (BOJ) Governor Kazuo Ueda reaffirmed that the central bank aims to achieve moderate inflation supported by wage growth and economic recovery, signaling alignment with Prime Minister Sanae Takaichi’s pro-growth agenda. However, Finance Minister Satsuki Katayama cautioned that inflation has yet to sustainably reach the BOJ’s 2% target, arguing it is too soon for rate hikes. Speaking before parliament, Ueda noted that a tight labor market and resilient domestic consumption are supporting gradual price and wage increases, while core inflation—excluding temporary cost factors—is edging closer to the target. The comments highlight a growing political challenge for the BOJ as it considers another rate hike, potentially as early as December. Analysts say Takaichi’s reflationary fiscal stance complicates the BOJ’s path toward policy normalization. Her administration plans a massive spending package to offset living-cost pressures while filling key government panels with reflationist allies, including former BOJ Deputy Governor Masazumi Wakatabe. Markets reacted with concern: long-term Japanese bond yields rose to a near one-month high, and the yen weakened to around ¥154.82 per dollar after briefly hitting a nine-month low. The combination of aggressive fiscal stimulus and a softer yen risks fueling inflation further, undermining household purchasing power. As former BOJ board member Takahide Kiuchi warned, “Takaichi’s fiscal expansion could worsen Japan’s finances and pressure the yen—an inherent contradiction in her economic policy.”
China Warns Japan Over “Outrageous” Taiwan Remarks by PM Takaichi
China has strongly condemned Japanese Prime Minister Sanae Takaichi’s recent remarks on Taiwan, calling them “extremely outrageous” and warning Tokyo to “bear all consequences” if they are not retracted. Takaichi stated in Japan’s parliament that any Chinese attack on Taiwan could be considered a “threat to Japan’s survival,” potentially triggering a military response from Tokyo. Beijing’s Foreign Ministry spokesman Lin Jian demanded an immediate correction, accusing Takaichi of worsening bilateral ties. China’s state media, including CCTV, sharply criticized her comments as “malicious and dangerous,” while social media accounts linked to the outlet mocked Takaichi with insults, further inflaming public sentiment. The controversy escalated after Chinese Consul General in Osaka, Xue Jian, posted a now-deleted social media comment saying that “dirty heads meddling in others’ affairs should be chopped off,” which sparked outrage among Japanese lawmakers. Several politicians urged the government to expel Xue if Beijing fails to ease tensions. Meanwhile, Taiwan’s Foreign Minister Lin Chia-lung cautioned that the incident could fuel anti-Japanese sentiment in China and heighten regional instability. Despite Takaichi later clarifying she would not repeat such statements, analysts say the diplomatic rift between Beijing and Tokyo over Taiwan reflects deeper tensions amid China’s growing assertiveness and Japan’s evolving security stance alongside the U.S.
Gold Prices Surge to Three-Week High on U.S. Debt Worries and Fed Rate-Cut Hopes
Global gold prices climbed to their highest level in over three weeks on Thursday (Nov 13, 2025), supported by growing concerns over rising U.S. government debt and expectations of another Federal Reserve rate cut next month. Spot gold rose 0.7% to US$4,227.15 per ounce, while U.S. gold futures for December delivery gained 0.4% to US$4,232.30. Hugo Pascal, a precious metals analyst at InProved, said the rally in gold and silver reflected anticipation of monetary easing and solid physical demand, even as U.S. economic indicators pointed to slowing growth. The move followed President Donald Trump’s signing of a bill to end a record 43-day government shutdown, which delayed key economic reports including inflation and employment data. The new funding deal extends U.S. government operations until January 30, 2026, but is expected to raise the federal debt by US$1.8 trillion annually, pushing the total beyond US$38 trillion. Although Fed Chair Jerome Powell has warned against premature easing, markets are pricing in another 25-basis-point rate cut in December, with 80% of economists in a Reuters poll forecasting further accommodation. Lower interest rates typically boost gold’s appeal as a non-yielding safe-haven asset. Gold prices have soared nearly 60% year-to-date, hitting a record high of US$4,381.21 on October 20 amid mounting economic and geopolitical risks. Silver followed gold’s lead, rising 1.4% to US$54.14, while platinum and palladium edged higher to US$1,616.29 and US$1,487.50, respectively.