- EUR/JPY Slides as BoJ Signals Further Rate Hikes
- Fitch Ratings Predicts BoJ May Raise Rates to 0.5% by 2024
- ECB’s Joachim Nagel Optimistic About Core Inflation
EUR/JPY is trading near 156.20 in Friday’s Asian session, with the Bank of Japan (BoJ) signaling potential rate hikes. Fitch Ratings forecasts that the BoJ could raise rates to 0.5% by the end of 2024, diverging from the global easing trend.
BoJ policymaker Naoki Tamura’s recent hawkish comments suggest a possible rate increase to 1% by the second half of the next fiscal year. This indicates the BoJ’s confidence in achieving its inflation target and commitment to monetary tightening.
Meanwhile, the ECB lowered the Main Refinancing Operations Rate to 4.0% and ECB policymaker Joachim Nagel noted positive movements in core inflation. The Eurozone’s Industrial Production data release later today will be closely watched by traders.
**Analysis:**
The article discusses the recent developments in the EUR/JPY currency pair, with a focus on the Bank of Japan’s potential rate hikes and the European Central Bank’s policy decisions. It highlights Fitch Ratings’ predictions for future rate increases by the BoJ and the optimism expressed by ECB policymaker Joachim Nagel regarding core inflation. The analysis concludes with a note on the upcoming Eurozone Industrial Production data release and its potential impact on traders. Overall, the information provided can help individuals understand the current market trends and make informed decisions regarding their finances.