17/09/2026

BIZ & FINANCE THURSDAY | SEPT 17, 2026

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Poll shows increasing trust in global institutions o But there’s less comfort with US or China in leadership role, Rockefeller Foundation survey finds

BOJ set to raise rates to 31-year high as inflation risks loom TOKYO: The Bank of Japan (BOJ) is set to raise interest rates to a 31-year high on Friday and signal readiness to keep pushing up borrowing costs, joining other major central banks in fighting persistent inflation pressures driven by soaring oil costs. The move would be the first hike in three months and take interest rates closer to levels the BOJ deems neutral to the economy, marking another step away from decades of ultra-low rates that cemented the yen’s status as a cheap global funding currency. A hike by the BOJ would follow one by its European counterpart and an expected tightening by the US Federal Reserve later this week, highlighting their focus on inflation risks. Having nearly fully baked in a rate hike, markets are focusing on any hints BOJ Governor Kazuo Ueda could provide on the timing and pace of further increases. “Markets are divided between those who see hawkish BOJ communication as helping lower bond yields by alleviating concern it is behind the curve on inflation, and others who see it as lifting yields by moving up terminal-rate bets,“ said Katsutoshi Inadome, senior strategist at Sumitomo Mitsui Trust Asset Management. “With so much uncertainty on how markets could react, the best approach for the BOJ is to stay as vague as possible.” At the two-day meeting ending on Friday, the BOJ is set to raise its policy rate to 1.25% from 1%. Board member Toichiro Asada, who dissented to the rate hike in June, may do so again, analysts say. Given the need to gauge the impact of past rate hikes on financial conditions, many in the BOJ likely favour a 25-basis-point hike over a bigger move, sources have told Reuters. The BOJ exited a decade-long stimulus in 2024 and raised rates several times including in June. It kept rates steady in July but warned of an inflation overshoot from soaring fuel costs, rising import costs from a weak yen and strong AI demand. Ueda also said earlier this month with underlying inflation “quite close” to its 2% target, the BOJ must pay particular attention to inflationary risks. Analysts polled by Reuters expect the BOJ to hike rates to 1.25% this month, 1.5% by end-March next year and then to 1.75% in the second quarter of 2027. Most saw the terminal rate as being at least 1.75%. Ueda faces a huge communication challenge when he holds a news briefing after Friday’s policy meeting. While the BOJ hopes to avoid pre committing to another early rate hike, repeating its dovish,“data-dependent”approach risks triggering renewed yen selling that would push up import prices. Sounding too hawkish, on the other hand, could upend the bond market, which is already seeing a sell-off that pushed up yields to three decade highs on concern over Japan’s finances. A hike to 1.25% would also bring the BOJ’s policy rate within its estimated 1.1% to 2.5% range of Japan’s nominal neutral rate, or the level that neither cools nor overheats growth, thus raising questions around how far it could eventually hike rates. Ueda has said the BOJ had no pre-set idea on how far it could hike. But many in the central bank likely sees scope for several more increases before reaching neutral, say sources familiar with its thinking. Hawkish board member Naoki Tamura, for one, sees the neutral rate sitting around 2%. “Delaying necessary rate hikes would cause side-effects, though the pace would depend on economic, price and financial conditions at the time,“ said one of the sources. Prime Minister Sanae Takaichi’s expansionary fiscal policy also complicates the BOJ’s decisions. IMF managing director Kristalina Georgieva warned of the challenges the unprecedented large fiscal support deployed by governments is inflicting on central banks. – Reuters

WASHINGTON: A new poll of over 35,000 people worldwide shows continued support for global cooperation and rising trust in international institutions, but less comfort with the US or China taking leadership roles. In fact, many view both as a threat. The survey, commissioned by the Rockefeller Foundation and conducted in 34 countries from July 21 to Aug 5, reflected a grim view of economic developments and security challenges, with nearly 70% saying the world had gotten worse over the past year. Only 38% of those surveyed felt their national economies would improve over the next five years, with optimism down sharply in two of the largest economies. Optimism fell 26 percentage points in India to 50% and 16 points in China to 56%. Despite widespread pessimism, 57% of those surveyed said countries should cooperate to solve global challenges such as security even if it means compromising on some national interests. That’s up from 55% in last year’s survey. The poll, released ahead of next week’s United Nations General Assembly in New York, comes after nearly seven months of war in the Middle East that has upended global energy markets, lowered economic growth and fueled inflation. That followed a year of turmoil sparked by sweeping tariffs imposed by US President Donald Trump. The US and Israel launched their war against Iran on Feb 28, followed by Tehran’s subsequent closure of the Strait of Hormuz, which had carried 20% of the world’s oil. The conflict has spread to other countries including Lebanon, Yemen and Saudi Arabia, adding more upward pressure on oil prices. The poll showed that the people surveyed were not comfortable with the US or China as a global leader, and 61% supported countries working together without the participation of either of the world’s two largest economies. Canada received the highest level of comfort for taking a leading role in world

Survey points to changing perceptions of major powers and greater confidence in international institutions. – SUNBIZ IMAGES

was not asked in 2025. International institutions saw their results rise over the past year. Trust in the World Health Organisation rose to 69% from 61%, while the UN’s score rose to 62% from 58%. The World Bank, International Monetary Fund and International Criminal Court, which all got failing grades in last year’s survey, saw the biggest gains. Trust in the World Bank rose to 55% from 46%, the International Monetary Fund edged to 51% from 43% and the ICC scored 54%, up from 48% last year. The World Trade Organisation scored 57%, up from 50%. Excluding assessment of respondents’ own country, 42% viewed Russia as a major threat, compared with 34% for the US and 30% for China. Russia was the most widely named country of concern in 14 countries, with the highest rates recorded in Europe. The US was seen as the greatest threat in 15 countries, with the highest percentages seen in Indonesia (73%), Brazil (59%), Mexico (58%) and Turkiye (57%). – Reuters

affairs at 60%, followed by Japan (58%) and Australia (55%). The European Union and Britain were closely behind, with 55% and 54%, while the United Nations stood at 52%. By contrast, just 39% were comfortable with the US taking a leading role and 37% with China. Russia was viewed even more negatively, with just 26% comfortable. Eric Pelofsky, vice-president of Rockefeller Foundation, said the poll results showed the “middle powers” approach championed by Canadian Prime Minister Mark Carney had real credibility globally. Carney has also called the Middle East war a failure of the global order. “It reflects a deep erosion in global leadership” for the US, he said. “People are discussing solutions to global problems and are no longer asking what do the Americans think. That’s a gut punch.” Views differed sharply in developing and advanced economies, with 53% of developing countries comfortable with China, against 23% in wealthier nations. Russia had a 27 point gap and the US 17 points. The question

Korean Air finalises record order for 103 Boeing aircraft SEATTLE: Korean Air has finalised an order for 103 Boeing aircraft worth US$36.2 billion (RM147 billion) at list prices, including wide body passenger jets, freighters and single-aisle planes, the airline and the US planemaker said yesterday, completing a deal first announced in 2025. Korean Air’s Boeing order includes passenger jets and freighters as the carrier expands and renews its fleet. – PEXELS PIX

The order, the largest in Korean Air’s history, comprises 20 Boeing 777-9s, 25 787-10s, 50 737-10s and eight 777-8 Freighters. Of the four aircraft types, only the 787 is currently certified for commercial service. Boeing is still developing the 777-8 Freighter. Aviation advisory and intelligence firm IBA estimated the aircraft order is worth about US$12.6 billion at current market prices after discounts, substantially below its US$36.2 billion list-price value. Korean Air said the broader investment package is valued at US$44.8 billion. In addition to the aircraft, it includes an US$8.6 billion agreement to purchase 21 spare engines from GE Aerospace and CFM International, as well as a 15-year engine maintenance agreement covering 28 aircraft.

to expand to more destinations in the US and Latin America. About 80% of the jets are expected to replace aircraft already in Korean Air’s fleet. Cho yesterday described the completion of the agreements as a significant milestone and said the investment underscored ties between the US and South Korea. Boeing said the deal was a result of bilateral trade discussions. – Reuters

The airline said the investment would support its long-term fleet expansion following its integration of Asiana Airlines while improving fuel efficiency as it transitions to newer aircraft models. The plan was first unveiled during South Korean President Lee Jae-myung’s visit to Washington last year. Korean Air CEO Cho Won-tae has previously said the new aircraft would enable the carrier