Recapping the Bank of Japan monetary policy decision today

Recapping the Bank of Japan monetary policy decision today - rates unchanged again

The posts from earlier are here:Bank of Japan leaves rates unchanged, as expectedBank of Japan comprehensive review on past monetary easing stepsUSD/JPY jumps above 155.20 after BoJ votes 8 - 1 to leave rates unchanged againBut if you want a quickie rundown:Interest Rates Held Steady: The BOJ kept its short-term policy rate unchanged at 0.25%, with an 8-1 vote among its board members.Dissenting Vote: Board member Naoki Tamura, a policy hawk, proposed raising rates to 0.5%, citing rising inflationary risks. His proposal was voted down.Future Rate Hikes Expected: Markets anticipate the BOJ will raise rates early in 2025, with most expecting a hike to 0.5% by March.Economic Conditions:Japan’s economy is recovering moderately, with some weaknesses.Consumption is increasing, but uncertainty around U.S. policies and slowing demand in China could weigh on growth.Annualized GDP growth slowed to 1.2% in Q3, with consumption rising a modest 0.7%.Inflation Trends:Core inflation has fallen from a peak of 4.2% in January 2023 to 2.3% in October.Wage growth, currently at 2.5%-3%, is expected to continue amid labor shortages, supporting the BOJ’s gradual rate hike strategy.Market Reaction:The yen initially fell to a one-month low against the dollar before recovering slightly.Investors are watching BOJ Governor Kazuo Ueda’s press conference for clues on the timing of the next rate hike.Background:The BOJ ended negative interest rates in March 2024 and raised its policy target to 0.25% in July.Future hikes depend on wage growth and inflation aligning with the BOJ’s projections.*** Next up we will have the press conference from Bank of Japan Governor Ueda. This is due at 0630 GMT (0130 US Eastern time) and I expect Ueda to sound a hawkish note or two. USD/JPY update: This article was written by Eamonn Sheridan at www.forexlive.com.

The posts from earlier are here: Bank of Japan leaves rates unchanged, as expected Bank of Japan comprehensive review on past monetary easing steps USD/JPY jumps above 155.20 after BoJ votes 8 - 1 to leave rates unchanged again But if you want a quickie rundown: Interest Rates Held Steady : The BOJ kept its short-term policy rate unchanged at 0.25% , with an 8-1 vote among its board members.

Dissenting Vote : Board member Naoki Tamura , a policy hawk, proposed raising rates to 0.5% , citing rising inflationary risks. His proposal was voted down.

Future Rate Hikes Expected : Markets anticipate the BOJ will raise rates early in 2025 , with most expecting a hike to 0.5% by March . Economic Conditions : Japan’s economy is recovering moderately , with some weaknesses.

Consumption is increasing, but uncertainty around U.S. policies and slowing demand in China could weigh on growth.

Annualized GDP growth slowed to 1.2% in Q3, with consumption rising a modest 0.7% .

Inflation Trends : Core inflation has fallen from a peak of 4.2% in January 2023 to 2.3% in October.

Wage growth, currently at 2.5%-3% , is expected to continue amid labor shortages, supporting the BOJ’s gradual rate hike strategy. Market Reaction : The yen initially fell to a one-month low against the dollar before recovering slightly.

Investors are watching BOJ Governor Kazuo Ueda’s press conference for clues on the timing of the next rate hike. Background : The BOJ ended negative interest rates in March 2024 and raised its policy target to 0.25% in July .

Future hikes depend on wage growth and inflation aligning with the BOJ’s projections. *** Next up we will have the press conference from Bank of Japan Governor Ueda. This is due at 0630 GMT (0130 US Eastern time) and I expect Ueda to sound a hawkish note or two.

USD/JPY update:.