Bank of Japan Governor Signals Potential Rate Hike
During his scheduled appearance, Bank of Japan Governor Kazuo Ueda stated that it may be appropriate to raise rates if trend inflation increases as forecasted.
Key Points from Governor Ueda’s Comments:
- Real interest rates in Japan are currently deeply negative, stimulating the economy and contributing to price increases.
- If trend inflation reaches around 2%, the policy rate should move closer to levels considered neutral for the economy and prices.
- Interest rates will be raised if the economy and prices align with the forecasts outlined in the quarterly outlook report.
- There is high uncertainty surrounding the economy and prices, requiring timely and appropriate monetary policy responses.
- The Bank of Japan will closely monitor US and overseas economic outlooks and market developments, adjusting policies accordingly.
- Changes in corporate price and wage-setting behavior are expected to impact inflation trends in the upcoming fiscal year.
Market Reaction to BoJ Chief’s Comments
Despite the hawkish remarks from the Bank of Japan Chief, the USD/JPY pair is gaining strength, reaching 144.00 with a 0.31% increase for the day.
Japanese Yen Price Today
The table below displays the percentage changes of the Japanese Yen (JPY) against major currencies today. The Japanese Yen weakened the most against the Australian Dollar.
Percentage Change of JPY Against Major Currencies:
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.05% | -0.12% | 0.26% | -0.21% | -0.40% | -0.16% | -0.03% |
The heat map above showcases the percentage changes of major currencies against each other. The base currency is selected from the left column, and the quote currency is chosen from the top row. For instance, the percentage change displayed in the box where JPY intersects with USD represents the change in JPY/USD exchange rate.