The BOJ will consider adjusting bond purchases or other policy changes as early as next week, according to a newspaper report.
Traders piled into bets on another hawkish pivot from the Bank of Japan, following a report that the central bank will review the side effects of its policy as soon as next week.
Japan’s currency has surged about 17 per cent from a low set in October amid government intervention, a winding back of bets on Fed interest-rate hikes, and speculation over hawkish BOJ policy shifts.and Federal Reserve commentary that weighed on expectations for how much the US central bank might ultimately increase its policy rate.
“We now expect the Bank of Japan to widen the yield-curve control range by [0.5 per cent] in March,” BNP Paribas strategists, including Ryutaro Kono in Tokyo, wrote in a research note. There is “risk of an action as early as the January meeting”, they said.Investors around the world are ramping up bets that the BOJ will be compelled to exit its ultra-dovish settings after it has doggedly clung to the policy even as its major counterparts have tightened.
The BOJ’s decision to double its allowed ceiling for the 10-year yield to 0.5 per cent in December wasn’t the beginning of an exit of monetary easing, but a way to make it more sustainable, Mr Kuroda said last month.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Attack from space would trigger collective defence, say US and Japan, amid China fearsAntony Blinken says China is ‘greatest shared strategic challenge’ in the region as US backs Japan’s biggest military build-up since second world war
Read more »
South Korea's plan to compensate citizens once enslaved by Japan sparks fierce criticismSeoul has announced it will consider a domestic fund to compensate South Koreans enslaved by Japanese companies before the end of World War II. However victims are angry the money is not coming from Japan.
Read more »
ACCC to investigate bank interest ratesAustralia's competition watchdog will investigate whether banks are passing on interest rate rises to saving accounts in a fair manner. Treasurer Jim Chalmers is asking financial institutions to reward savers with deposit accounts after a period of record low interest rates. He said increased interest on savings should be the silver lining of recent rate rises.
Read more »
World Bank walking tightrope as it mulls increased lending to poorestCampaigners say bank should rush to rescue countries facing recession – but can it do so without resulting in mass debt write-offs?
Read more »
'Any adverse development' could tip global economy into recession, World Bank warnsThe World Bank's 2023 growth forecasts teeter on the brink of recession in multiple countries, citing 'fragile economic conditions'.
Read more »