BOJ rate hike likely, yen rally at risk
BOJ expected to hike rates next week, but yen rally may be limited if Ueda signals caution.
The RBNZ raised its cash rate by 25bp to 2.75%, as widely expected.
The Reserve Bank of New Zealand lifted its official cash rate by 25 basis points to 2.75%, a move that had been broadly anticipated by markets. The previous level was 2.5%.
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BOJ expected to hike rates next week, but yen rally may be limited if Ueda signals caution.
The yen hit a six-month high against the dollar as BOJ hike bets built, while China's August imports missed forecasts and the Kospi gained nearly 2%.
PBOC set the yuan central rate at 6.7804 per dollar, above estimates, and conducted a net 4 billion yuan drain via reverse repos.
MUFG sees ECB hike this week, highlights euro downside risk from Lagarde's comments, German elections, and gas prices.