Charles-Henry Monchau, CFA, CMT, CAIA’s Post

BoJ Hikes Key Rate Ahead Of Fed Announcement The Bank of Japan raised its benchmark rate unexpectedly and also outlined its tapering plans on Wednesday ahead of the Federal Reserve's monetary policy announcement. The policy board voted 7-2 to lift the uncollateralized overnight call rate to around 0.25 percent from around 0-0.1 percent. The new rate is the highest since late 2008. In a unanimous vote, the board decided to reduce the amount of its monthly outright purchase of government bonds to around JPY 3 trillion by the first quarter of 2026. Currently, the bank purchases around JPY 6 trillion bonds per month. BoJ's decision came ahead of the monetary policy announcement by the US Federal Reserve. The Fed is widely expected to keep its key rate unchanged today but keep the door open for a rate cut in September. #BankofJapan #BoJ #Japan #centralbanks #interestrates #ratehikes #Fedratehike #Yen #JPY

The Bank of Japan is forecast to keep its interest rate settings unchanged Friday, with the yen’s plunge this week to a fresh 34-year low making it more likely the bank will tone down its stance on keeping policy easy. https://lnkd.in/gkZi2MqC The spotlight on Governor Kazuo Ueda will be more intense than usual as currency officials have intensified warnings to traders over the yen, and with business executives increasingly vocal about their currency concerns. Market players will scrutinize the policy statement, the quarterly economic outlook and Ueda’s remarks for hawkish signals, and for anything new on bond purchase plans. “This meeting is to examine the impact of the shift in the policy framework in March,” said Mari Iwashita, chief market economist at Daiwa Securities. “Given the weak yen and elevated oil prices, there is a chance for upside risks to intensify for inflation.” The yen fell through the key threshold of 155 to the dollar this week, the weakest level since 1990, keeping currency traders on high alert for the possibility of government intervention. Japan’s top currency officials have indicated frustration over the yen’s continued slide even after the BOJ’s first rate hike since 2007 last month.

„BOJ Friday“ is coming up. - All eyes are on the Bank of Japan's early Friday meeting. The BoJ is expected to raise interest rates by 25 basis points, bringing the cash rate to 0.50%. Yen volatility remains a risk, particularly if the BoJ holds rates unexpectedly or opts for a more aggressive 50 basis point hike…Or if the central bank changes its monetary policy statement tone significantly. ⤴️ Interestingly, Japan's 2 year yields hit 0.7% earlier today. Keypoints: - The Japan carry trade, which involves borrowing in yen due to historically low interest rates and investing in higher-yielding assets, could be significantly impacted by the upcoming policy changes from the BoJ. - The Bank of Japan is anticipated to adjust interest rates on January 24, 2025, potentially hiking by 0.25% to 0.50%, marking a notable shift after maintaining low rates for 17 years. - This rate decision could still influence global financial markets, particularly by affecting the unwinding of carry trade positions, even-though market participants has had time to adjust expectations following previous rate hikes. And again, a real surprise would be an unexpected „rates on hold“ or „hike by 50 bps“ decision, in my personal opinion both rather unlikely. It will be interesting to observe Japanese markets and $/JPY, JPY crosses tomorrow. What’s your take? 🍵🍶 TGIF

📰 Easy Trading Online | Breaking News | 09.17.2024 THE BANK OF JAPAN MAY RAISE INTEREST RATES IN DECEMBER. A new survey reveals that economists and foreign exchange strategists are divided on the timing of the next interest rate hike by the Bank of Japan (BOJ). BOJ Governor Kazuo Ueda recently affirmed that the bank would continue to raise rates if inflation persists and that it would closely monitor financial market conditions. The survey, conducted between September 2 and 13, indicates a consensus that no changes will be made at this week's BOJ meeting. However, the outlook for the October and December meetings remains uncertain. Factors such as the significant market volatility in early August and internal political factors have lowered the likelihood of a rate change in September. 18.75% of survey participants predict a rate hike at the October meeting, while 25% consider it a possibility. For the December meeting, 25% of analysts expect a high probability of a rate hike, and 31.25% see it as a "decisive meeting" dependent on economic data. 🌟 Start trading globally with just a tap at: www.easytradingol.com #EconomicNews #Forex #Trading #EasyTradingOnline #USD #interestrates

Japan's Big Decision Tomorrow: Bank of Japan's Monetary Policy Announcement 🇯🇵 All eyes are on the Bank of Japan (BoJ) as they prepare to announce their monetary policy decision tomorrow at 8:30 AM IST (Jan 24). Market expectations are high, with predictions of a 0.25% rate hike 📈. But why does this matter? The last time Japan hiked rates by 0.25% after 30 years, it sent shockwaves across global markets! World markets and commodities tumbled, cryptos crashed and the Nifty plunged 5% within 2-3 days. However, things could be different this time around. Even if the BoJ raises rates, the market may not react as severely. The BoJ has been cautious in its approach and policymakers have emphasized the need for slow and cautious movement on interest rate hikes. Key Takeaways: - Monetary Policy Decision: BoJ's announcement tomorrow at 8:30 AM IST (Jan 24) - Market Expectations: 0.25% rate hike predicted - Global Implications: Potential impact on global markets, commodities and cryptocurrencies. - BoJ's Cautious Approach: Policymakers emphasize slow and cautious movement on interest rate hikes #BankOfJapan #MonetaryPolicy #InterestRateHike #GlobalMarkets #Economy #Finance #Business #Japan https://lnkd.in/gp_NXvfs

The Bank of Japan (BOJ) is likely to debate whether to raise interest rates when it meets next week and unveil a plan to roughly halve bond purchases in coming years, sources said, signalling its resolve to steadily unwind its massive monetary stimulus. The rate decision will depend on how long the board members prefer to wait for clarity on whether consumption will recover and keep inflation stably around the bank's 2% target, said four people familiar with the BOJ's thinking. Over three-quarters of economists polled by Reuters expect the central bank to stand pat this month and possibly next move in September or October, but sources suggested the outcome of the July 30-31 meeting was considerably less certain. #Bank #of #Japan #to #debate #to #raise #interest #rates #next #week