Bank of Japan Maintains Rates Amid ETF Unwinding and Policy Uncertainty
TL;DR Summary
The Bank of Japan maintained its policy rate at 0.5% with two dissenting votes favoring a hike, signaling potential future rate increases amid rising inflation and economic confidence. The BoJ announced plans to gradually reduce ETF and J-REIT holdings, while political uncertainties and US monetary policy developments could influence the timing of rate hikes. Despite slowing headline inflation due to subsidies, core inflation remains above target, supporting the case for a rate increase possibly in October. The yen's outlook remains bullish with expectations of a rate hike and US Fed rate cuts, potentially pushing USD/JPY towards 145.
- Bank of Japan hits pause; dissenting votes hint at incoming rate hikes ING Think
- Bank of Japan to Start Offloading More Assets The Wall Street Journal
- BOJ keeps interest rates steady, decides to start selling ETFs Reuters
- BOJ Keeps Rates Steady as Ishiba’s Departure Adds to Uncertainty Bloomberg.com
- Stocks sell off as Bank of Japan unveils plan to unwind $250bn of ETFs Financial Times
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