2026-01-22 21:06

BOJ keeps key policy rate steady at 0.75% as widely expected Board revises up growth forecasts for fiscal 2025, 2026 Board sees risks to growth, inflation roughly balanced Hawkish member Takata proposes rate hike, turned down by board TOKYO, Jan 23 (Reuters) - The Bank of Japan retained its hawkish inflation forecasts on Friday after keeping policy steady, signalling its conviction that a moderate economic recovery justifies raising still-low borrowing costs further in a politically charged atmosphere. In a sign of its caution over the inflationary effects of a weak yen, the central bank said the currency's moves could prod firms to pass on rising import costs and push up underlying consumer prices - a key gauge determining its rate-hike timing. Sign up here. Board member Hajime Takata also proposed raising rates for the second straight meeting, which found no other voices in support but highlighted the hawkish momentum within the central bank. "We will continue to raise interest rates if our economic and price forecasts materialise. As for our rate-hike path and pace, that will depend on economic, price and financial developments at the time," BOJ Governor Kazuo Ueda told a press conference. "We will carefully look at available data at each policy meeting, and update our view on economic and price developments, risks and the likelihood of achieving our forecasts," he said. At a two-day meeting that ended on Friday, the BOJ maintained its key policy rate at 0.75% in a widely expected decision after having just hiked the rate from 0.5% in December. Markets had been keenly watching out for Ueda's post-meeting press conference for hints on when the BOJ might next raise rates, a decision complicated by a fresh bout of market volatility caused by Prime Minister Sanae Takaichi's move to call a snap election next month. Takaichi's dovish monetary and fiscal credentials pose a particular challenge for the BOJ given Ueda's inclination to normalise policy after decades of stimulatory rates. In a quarterly outlook report, the BOJ painted a more optimistic view of the economy to say a positive cycle of income and expenditure will "gradually strengthen." The BOJ raised its growth forecast for fiscal 2025 and 2026, and maintained its view the economy will remain on course for a moderate recovery. It also revised up its core consumer inflation forecast for fiscal 2026 to 1.9% from 1.8% three months ago, adding that risks to the economic and price outlook were roughly balanced. While food price growth will moderate, underlying inflation will continue to gradually increase as companies continue to pass on rising labour costs, the report said, signalling conviction that Japan is making progress in meeting the prerequisite for further rate hikes. The BOJ also warned of the inflationary pressure emanating from a weak yen, which pushes up import costs. "Exchange rate moves are more likely to affect prices than in the past. Attention must be paid to how currency moves affect underlying inflation through changes in the public's perception of future price moves," the report said. Analysts saw the report as signalling more rate hikes in coming months. "After its hike in December, it is no surprise that the BOJ remained on hold today. However, the central bank's outlook report hints at growing hawkishness, with officials revising up their growth forecasts for the coming year and, crucially, also nudging up their inflation expectations for the next couple of years," said Fred Neumann, chief Asia economist at HSBC in Hong Kong. BOJ REACTION TO YIELD MOVE IN FOCUS Japan's economy has weathered the hit from U.S. tariffs and is likely to get a lift from Takaichi's stimulus package focusing on steps to cushion the blow from rising living costs. But the premier's vow to strengthen her expansionary fiscal policy and suspend the 8% sales tax on food has stoked fears of additional debt issuance, leading to the spike in bond yields, which could hurt the economy. The central bank is thus caught between a need to keep yen bears at bay with hawkish communication, without triggering further rises in bond yields on expectations of hefty spending by Takaichi's government. The yield spike has drawn renewed attention to the BOJ's quantitative tightening plan, under which it has been unwinding its years of massive stimulus by gradually slowing its bond buying at a set pace to reduce its huge balance sheet. The BOJ has been tapering bond buying since 2024 under a pre-set, moderate pace. But it has said it could suspend this tapering or conduct emergency bond-buying operations to cope with extreme market stress. Ueda has repeatedly said while bond yields should be set by markets, the BOJ will step in if they make "exceptional, unusual moves." The's BOJ directional change in 2024 saw it raising policy rate several times and tapering bond purchases on the view Japan was on the cusp of durably achieving the bank's 2% inflation target. https://www.reuters.com/world/asia-pacific/boj-set-hold-rates-steady-election-yield-spike-cloud-outlook-2026-01-22/

2026-01-22 20:53

WASHINGTON, Jan 22 (Reuters) - The Trump administration said on Thursday it is restructuring or eliminating nearly $84 billion in clean energy projects funded during the administration of former President Joe Biden. The move was the latest by President Donald Trump's administration to favor fossil fuels and nuclear energy while eliminating subsidies for alternative energy like wind and solar. Sign up here. The changes by the Office of Energy Dominance Financing, or EDF, come after a review of $104 billion in loans made during the Biden administration with the majority of that coming after the 2024 presidential election. The office was known then as the Loan Programs Office. The Trump administration has canceled or is in the process of terminating nearly $30 billion in loan obligations, the department said. The cancellations include, for example, one from last year of $4.9 billion for the Grain Belt Express transmission project to send power from wind and solar energy projects to cities in the Midwest and East. The Trump administration has eliminated about $9.5 billion in loans to wind and solar projects and where possible has replaced those by supporting new capacity at natural gas and nuclear power plants, the department said. The department is also revising another $53.6 billion in loans. The 2025 tax law provided the office with billions in new lending authorities, and the EDF is the world's largest energy lender with nearly $290 billion in available lending, according to the department. Energy Secretary Chris Wright said in November the biggest use of the remaining loans will go to boost nuclear power. The department said priorities will include coal, oil, and gas, and projects on critical minerals, geothermal, the power grid and manufacturing and transportation. https://www.reuters.com/business/energy/us-cutting-or-revising-nearly-84-billion-energy-loans-2026-01-22/

2026-01-22 20:36

Winter storm to cause flight delays and cancellations across US Major airlines offer flexible rebooking options amid storm Travelers advised to monitor flight status and use apps for rebooking Delta cancels select flights in five states NEW YORK, Jan 22 (Reuters) - U.S. airlines have rolled out sweeping travel waivers as a winter storm, forecast to spread heavy snow, sleet and dangerous ice across two dozen states, threatened to disrupt air travel across a wide swath of the country heading into the weekend. The National Weather Service has warned that the mix of freezing rain, sleet and snow could make travel dangerous and lead to power outages and tree damage in parts of the Southeast, while heavier snow is expected farther north. The winter storm is expected to bring cold temperatures not seen since 2021, according to AccuWeather, a weather forecasting company. Sign up here. Delta Air Lines (DAL.N) , opens new tab canceled flights at select airports in five states on Thursday afternoon, as carriers said the mix of ice, snow and strong winds could slow airport operations, ripple into delays and cancellations, and complicate rebooking during one of the busier winter travel periods. "This will likely result in thousands of flight cancellations on Saturday, Sunday and Monday," said Dan DePodwin, vice president of forecasting operations at AccuWeather. Travel booking app Hopper estimates that upwards of 15,000 flights could be delayed due to the storm. MAJOR AIRLINES OFFER FLEXIBLE REBOOKING OPTIONS Southwest Airlines (LUV.N) , opens new tab said it expects disruptions across parts of the South and East, giving customers flexibility to rebook or travel standby within a two-week window. Delta said weather could affect flights across the Southern Plains and Southeast, including its Atlanta hub, and canceled flights in North Texas, Oklahoma, Arkansas, Louisiana and Tennessee. The carrier said it will automatically rebook customers to the next-best itinerary and offered fee-free changes for eligible customers who adjust travel within its waiver terms. American Airlines (AAL.O) , opens new tab expanded similar flexibility across a network that includes major hubs such as Dallas-Fort Worth and Charlotte, while United Airlines (UAL.O) , opens new tab issued a waiver spanning much of the Mid-Atlantic and Northeast and parts of the Carolinas and Ohio Valley, including its Newark and Washington-area operations, allowing affected customers to shift travel within a set period without change fees or fare differences if they keep the same itinerary and cabin. JetBlue (JBLU.O) , opens new tab issued a Northeast-focused waiver that covers New York and Boston-area airports and said it will waive change and cancel fees for customers traveling to and from 11 cities. Ultra-low-cost carrier Frontier Airlines (ULCC.O) , opens new tab said if flights are canceled or delayed for more than three and six hours for domestic and international flights, respectively, travelers can request a refund. Spirit Airlines (FLYYQ.PK) , opens new tab said it is waiving modification charges and fare differences across 13 cities for travel between January 23 and 25. Airlines urged travelers to monitor flight status closely and use mobile apps and airline websites for the fastest rebooking options as the storm advances. Travelers have already started to prepare for travel disruptions. Hopper said it has seen a 17% increase in travelers adding Disruption Assistance to trips for this upcoming weekend. "Even in locations far away from the storm, such as the West Coast hubs, Denver, Chicago and Minneapolis, ripple effects of this widespread travel-halting winter storm will be felt," said DePodwin. https://www.reuters.com/world/us/us-airlines-issue-travel-waivers-winter-storm-fern-threatens-widespread-2026-01-22/

2026-01-22 20:22

WASHINGTON, Jan 22 (Reuters) - Republican U.S. lawmakers plan to create a task force to study potential year-round sales of higher-ethanol E15 gasoline blends in the U.S., after an attempt to pass such legislation in a funding bill this week fell through. Farm groups and Midwest ethanol advocates blasted the decision to form a task force instead of passing legislation, calling it a blow to American farmers already stung by low prices, uncertain global trade, and a lack of clarity over U.S. biofuels policies. Sign up here. Farm interests want year-round sales of E15 – which has higher ethanol content than the E10 now widely available at the pumps. The move would boost demand for corn, ethanol’s primary ingredient. Oil refiners have resisted increased biofuel blending mandates in the past, citing higher costs. E15 sales are currently limited during summer months due to air quality regulations. The compromise deal would establish a so-called "E-15 Rural Domestic Energy Council" to investigate topics including the sale of E15, U.S. refining capacity, biofuel blending credits and other issues and to recommend legislation by mid-February, according to a copy of the draft provision seen by Reuters. A vote was expected as early as Thursday afternoon. "Kicking the can down the road and creating a new council to study future legislative options would just exacerbate the uncertainty and apprehension already being felt across rural America," said Geoff Cooper, President and CEO of the Renewable Fuels Association trade group. Democratic Representative Nikki Budzinski of Illinois also criticized the creation of the council. "Until late last night we did have a bipartisan agreement for E15 that had industry support," she said. "They just gave up....and decided a task force is good enough." https://www.reuters.com/business/energy/us-congress-create-ethanol-task-force-after-e15-deal-falls-through-2026-01-22/

2026-01-22 20:06

Royalty rates would become flexible, can be lowered to 15% Independent arbitration to be added as dispute-solving mechanism Production-sharing contracts to be formalized in law Jan 22 (Reuters) - A sweeping proposed reform of Venezuela's hydrocarbons law would allow foreign and local companies to operate oilfields on their own through a new contract model, commercialize output and receive sale proceeds even if acting as minority partners of state company PDVSA, drafts seen by Reuters on Thursday showed. Venezuela's interim President Delcy Rodriguez last week submitted the reform proposal to the National Assembly. It is expected to overhaul the OPEC country's oil industry by changing former President Hugo Chavez's landmark oil law. Sign up here. Lawmakers on Thursday approved the reform in an initial vote, following a 50-million-barrel oil supply deal between Caracas and Washington this month. The deal, agreed after the U.S. capture of President Nicolas Maduro, gives the U.S. control of the country's main revenue source, U.S. President Donald Trump has said. A second debate vote in the National Assembly is needed before final approval. "Oil beneath the ground is useless," the National Assembly's head, Jorge Rodriguez, said during the session, urging lawmakers to back the changes so the country can attract foreign investment. No lawmakers who spoke on Thursday opposed the reform. The assembly, which has only a small number of opposition lawmakers, has not been formally recognized by the U.S., following doubts about its legitimacy. OIL COMPANIES, INVESTORS DEMAND AUTONOMY Oil executives and potential investors, as part of Washington's ambitious $100 billion reconstruction plan for Venezuela's energy industry, are demanding autonomy to produce and export oil, and receive the cash sale proceeds after Chavez's nationalizations and asset expropriations two decades ago. Independent lawyers have warned, however, that the sweeping reform conflicts with Venezuela's Constitution, which reserves the oil industry's main activities for the state. The reform also needs many related laws approved under Chavez and Maduro to be scrapped, they said. Some experts have said the model proposed by Rodriguez, which allows companies to independently produce and export oil through contracts with PDVSA, is contrary to the joint venture model on which the hydrocarbons law is based. The models' coexistence and their derived contracts could add confusion to an industry that 25 years ago organized its oil and gas activities around PDVSA-dominated partnerships, but that has also lost investors due to nationalizations, inflexible rules, and U.S. sanctions. Those production-sharing contracts, pushed by Maduro with little success and whose details were never disclosed publicly, led to the entrance of small operators into Venezuela's oilfields in recent years despite the sanctions. "Companies operating will handle administration at their own risk and expense. In this model, the state does not acquire debts, and remuneration is based on a percentage of volumes (produced)," a summary of the reform seen by Reuters said, referring to the production-sharing contract model. The proposal would allow the government, at its discretion, to lower royalties and related taxes to 15% from 33% for special projects and those requiring massive investments, an element that could sweeten terms for many operators considering venturing into a high-risk country. "These are fields that require large investments, but to achieve them, there must also be flexibility in royalties," said lawmaker Orlando Camacho, who read a summary of the reform in the National Assembly. The reforms also add the possibility of resorting to independent arbitration to solve disputes, a longstanding request from foreign companies after disagreements and lawsuits aimed at claiming compensation for assets expropriated in Venezuela. https://www.reuters.com/business/energy/venezuelas-proposed-oil-reform-give-autonomy-companies-operate-cash-sales-2026-01-22/

2026-01-22 19:32

Jan 22 (Reuters) - Berkshire Hathaway (BRKa.N) , opens new tab -owned BNSF Railway on Thursday said a winter storm will disrupt operations across major corridors, as heavy snow, high winds and extreme cold threaten train movement. The railroad warned customers moving freight through storm-affected regions to expect delays and longer transit times, and said shipments may temporarily take nonstandard routings, pass through unfamiliar locations or experience atypical interchanges during the disruption. Sign up here. A sweeping winter storm will batter U.S. transport and energy infrastructure, and will threaten major disruption for airlines, railroads and power providers as heavy snow, ice and sub-zero temperatures sweep across more than two dozen states. BNSF said the storm will disrupt a broad swath of the central United States as it moves from west to east, affecting its operations in central Oklahoma, northern Arkansas, southern Missouri and western Kentucky with 8–15 inches of snow. Earlier on Tuesday, railroad CSX (CSX.O) , opens new tab said it is closely monitoring a winter storm that could disrupt operations across several U.S. states as the storm strengthens and moves through its network. https://www.reuters.com/world/us/bnsf-warns-winter-storm-will-snarl-rail-traffic-across-central-us-corridors-2026-01-22/