The Bank of Japan, after clearly signalling last week's interest rate hike, may return to its accustomed fuzzy guidance about central bank policy to maintain flexibility when it eventually begins to consider how much tightening is enough.
The Bank of Japan raised interest rates on Friday to their highest since the 2008 global financial crisis and revised up its inflation forecasts, underscoring its confidence that rising wages will keep inflation stable around its 2% target.
Good morning. The Bank of Japan raises its interest rate to the highest level in 17 years. Inflation concerns may be making a comeback in the euro area. And the rise of women’s soccer in England is hiding a financial struggle.
World shares advanced Friday after U.S. stocks rose to a record and the Bank of Japan raised its key lending rate.
The Bank of Japan has raised short-term interest rates by a quarter point, the highest in 17 years, signalling efforts to normalise monetary policy in response to persistent inflation and increasing wages.
The BOJ fumbled its communication in December, surprising investors, but then telegraphed Friday's increase so unambiguously that the rate hike was 90% priced in.
The U.S. dollar edged up versus the euro but dropped against the yen on Monday as concerns about U.S. tariffs returned and investors braced for a raft of central bank policy meetings and economic data later this week.
Giving explicit advance signals, in addition to making the Bank of Japan feel boxed in, could breach Japanese law stipulating the nine-member board must debate and sign off on rate decisions at each policy meeting.
The Bank of Japan delivered a widely expected 25 basis point hike to its key lending rate on Friday, bringing the overnight call rate to the highest since 2008 and putting pressure on the dollar. The ICE Dollar Index slipped 0.
Bank of Japan goes through with planned rate increase, saying president is acting within expectations.
The Bank of Japan raised interest rates on Friday to their highest since the 2008 global financial crisis and revised up its inflation forecasts, underscoring its confidence that rising wages will keep inflation stable around its 2% target.