Investment Daily Note

The Fed left the target range for the benchmark federal funds rate unchanged at 0.25% to 0.5% in June meeting. The median projection for the federal funds rate remained at 0.875%, suggesting two possible rate hikes this year. However, the number of committees who see just one rate hike at the year-end increased to six from one out of 17 in the previous meeting. We think the decision was within expectation, and the impacts to markets would be insignificant.

Bank of Japan will announce monetary policy statement today at noon, deciding whether to unleash stimulus. According to Bloomberg survey, 27.5% of 40 economists forecast immediate actions at this meeting, while the others expect no actions until in July. We suggest investors to keep an eye on the news, Asian market may be volatile.