BOJ's Ueda Signals Further Tightening Amid Inflation Risks
BOJ Governor Ueda stated the bank will continue to raise rates in response to economic and price developments, noting inflation overshooting risks.
BOJ Governor Ueda stated the bank will continue to raise rates in response to economic and price developments, noting inflation overshooting risks.
Bank of Japan raised its benchmark rate to 1.25% on Friday, the highest since 1995, as energy costs pressure economies.
The BOJ's rate hike to 1.25% was accompanied by two dissenting votes, putting Governor Ueda's press conference in focus.
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The yen fell after the BoJ's expected rate hike, as dissenting votes tempered hawkish signals.
The Bank of Japan raised its policy rate by 25bp to about 1.25% in a 7-2 vote, signaling further rate hikes ahead but with board dissent.
Yen falls as Japan inflation misses forecasts, while Aussie gains on RBA Governor Bullock's hawkish comments.
Japan's headline CPI came in at 1.9% y/y in August, below the 2.0% forecast. Core-core CPI also missed expectations at 1.7%.
The Bank of Japan is expected to raise rates to 1.25% at today's meeting, with attention on Ueda's guidance and the yen's reaction.
Japan's August CPI data is due as the BoJ is widely expected to raise rates to 1.25%, with swaps pricing a near-certain hike.
Asia's Friday calendar features Japan's August CPI and a BoJ rate decision, plus RBA Governor Bullock speaking. A hike is widely expected.
The Fed and BOJ are poised for possible same-week rate hikes, with 89% of economists expecting a BOJ boost to 1.25%, its highest in 30 years.
Japan's July machinery orders fell 3.7% m/m, missing forecasts, while August trade deficit widened to 1105.6B yen, complicating BoJ policy.
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