Yen tumbles as BOJ's cautious guidance dashes hawkish bets
USDJPY jumps toward 158 after BOJ's 25bp hike, but the yen slips as Governor Ueda offers no clear signal for further hikes, while oil and stocks diverge.
USDJPY jumps toward 158 after BOJ's 25bp hike, but the yen slips as Governor Ueda offers no clear signal for further hikes, while oil and stocks diverge.
The BOJ hiked rates 25 bps to 1.25%, but dovish dissents disappointed markets. The yen weakened, stocks fell, and oil and bond yields remained elevated.
European stocks opened slightly lower Friday as profit-taking set in after a post-Fed rally; BOJ raised rates to 1.25%.
BOJ Governor Ueda highlighted spring wage talks for FY2027 as key for inflation trends, and said policy will not be swayed by board changes.
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.