The Bank of Japan is expected to hold steady on Tuesday, though it will adjust its view on inflation risks, with Governor Haruhiko Kuroda expected to underscore a commitment to continued easing to meet the bank's distant price target. interest rate or asset purchase program. In its quarterly economic forecast, the Bank of Japan is expected to raise its inflation forecast for the fiscal year that begins in April from 0.9 percent. The Bank of Japan's board may also discuss whether it is still appropriate to view price risk as "biased to the downside" given rising global inflation pressures, people familiar with the matter said earlier this month. The bank has been using the wording since October 2014.

Ray Dalio, founder of hedge fund Bridgewater, has warned that the transition away from fossil fuels cannot be too fast, saying that stopping money to supply the industry at a time when inflation is soaring would have a destabilizing effect. "Thank God for the oil producers" as they are providing a steady supply, Dalio told a panel at the Abu Dhabi Sustainability Week summit on Monday. Dalio became the latest to urge everyone to be vigilant. Several people have recently urged attention to how the world is transitioning to a greener economy, and how that transition could affect everything from the cost of fuel to food. But the urgency of the climate crisis is growing. Last year's ten most damaging weather events collectively cost $170 billion, according to a study.

Chinese President Xi Jinping called on all countries to ensure the safety and smoothness of industrial and supply chains and prevent inflationary shocks. Xi Jinping told the World Economic Forum via video link on Monday that it is necessary to "resolve various risks and promote the stable recovery of the world economy". This is the third time Xi Jinping has addressed the forum. "The intertwined risks of global industrial and supply chain disruptions, continued rise in commodity prices, and tight energy supplies have exacerbated the uncertainty of the economic recovery process," Xi said.

China Securities Journal quoted experts as saying that the “double drop” of MLF and open market operating rates will effectively push down the financing costs of the real economy. In January, the LPR for 1-year and 5-year periods may decrease accordingly. Citing Tang Jianwei, chief researcher of the Bank of Communications Financial Research Center, the decline in MLF interest rates will likely lead to a synchronous decline in LPR quotations in January. Among them, the 1-year LPR may be lowered by 5 to 10 basis points, and the 5-year LPR may be simultaneously lowered by 10 basis points, which does not rule out the possibility of subsequent RRR cuts. The RRR cut can play a role in alleviating the downward pressure on the economy and smoothing the economic fluctuations across the year, and the loose liquidity environment provided can also have the effect of cooperating with credit loosening.

The China Securities Regulatory Commission said in a press release that the 2022 system work meeting was held on January 17, emphasizing the need to persist in deepening reform and opening up, and adhere to the idea of reform to solve development problems and stabilize market expectations. This year, we must stick to the word of stability and earnestly maintain the stable and healthy development of the capital market. Steadily promote the entry of medium and long-term funds into the market, and promote the overall balance and coordinated development of investment and financing. Continue to maintain the normalization of IPO and refinancing, stick to the "hard technology" positioning of the Science and Technology Innovation Board, guide listed companies to focus on their main business to become better and stronger, and continue to steadily promote the clearing of risk companies. Create conditions to promote greater progress in China-US audit and supervision cooperation, accelerate the implementation of the regulatory system and policies for companies' overseas listing, and continue to firmly and orderly support eligible companies to list overseas in accordance with laws and regulations. We will promote the healthy development of capital regulation, and steadily promote risk resolution and disposal in key areas. Adhere to strict supervision of financing and M&A activities in specific sensitive areas, and set traffic lights for capital.

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