Bank of Japan today - preview - set to lift rates to 31-year high as Iran deal clouds path
From the original
A hike to 1% is essentially fully priced by markets, so the immediate yen and JGB reaction will hinge on Deputy Governor Uchida's tone at the post-meeting briefing. Any signal of a faster-than-expected path toward 1.25% would put fresh upward pressure on the yen and weigh on Japa
Related speeches
4 itemsBank of Japan 25bp rate hike to 1%, as widely expected
Bank of Japan raises rates to 1%, and will end tapering next year
The Bank of Japan's recent decision to raise its benchmark rate by 25 basis points to 1%, while committing to halt tapering by April 2027, underscores a significant shift in its monetary policy amidst rising inflation concerns. Per the full note from ING, the 7-1 vote reflects a consensus within the central bank about inflationary pressures, despite dissent regarding downside risks to the economy. The immediate market reaction was mild, but a sustained hawkish tone from Deputy Governor Uchida indicates further tightening could be anticipated, contingent on global geopolitical developments, particularly regarding the Middle East.
JGBs steady, Nikkei eases from record high as BOJ rate decision looms
Iran peace deal won't derail BOJ rate hike to 31-year high on Tuesday, ex-BOJ economist
More from INVESTINGLIVE
5 items- INVESTINGLIVE
Fed preview: Warsh is the noise, the Board is the signal
- INVESTINGLIVE
ECB policymaker Simkus sees at least one more rate hike ahead
- INVESTINGLIVE
PBOC governor Pan Gongsheng signals slower credit growth and offshore FX push
- INVESTINGLIVE
PBOC sets USD/ CNY mid-point today at 6.8096 (vs. estimate at 6.7569)
- INVESTINGLIVE
Japan exports beat forecasts in May at fastest pace since late 2022