He Japan Bank (BOJ) raised interest rates this Friday at its highest level from the 2008 global financial crisis, reflecting its confidence that the increase in wages will maintain stable inflation around its 2%target.
The Board decided to increase the short-term policy rate of 0.5% from 0.25% with an 8-1 vote. The Member of the Board Toyoaki nakamura He opposed the decision.
The ICE Dollar index decreases 0.48% to 107.52, while the dollar falls 0.4% against Japanese Yen, which is quoted at 155.43. American actions show slight downward pressure, while the Nikkei 225 stable index in 39,931.
This was the first increase in BOJ since the summer, when an unexpected increase in rates caused a brief mass sale in global stock markets. The officials also predicted a greater increase in inflation for this year.
The first statements of investors
Naoya Hasegawa, bond chief strategist in Okasan Securities, Tokyo He pointed to Reuters: “The decision was in line with our expectations. We expect the comments of the governor of the Boj, Kazu BOJ increased rates in this meeting.
For his part, Matt Simpson, Senior Market Analyst, City Index, Brisbane commented: “The increase was expected, but, for the first time in a long time, there were no great review in the economic perspectives. This leaves the door open to another increase of 25 basic points by the end of the year, with rates reaching a remarkable 0 , 75%”.
Meanwhile, Takahiro Otsuka, senior fixed -income strategist at Mitsubishi UFJ Morgan Stanley Securities, Tokyo said that “the result was expected, but it seems to be somewhat aggressive, since the Boj increased its inflation forecast. We want to verify the comments of Ueda to confirm the Boj’s position.”
Kieran Williams, Chief of FX Asia, Intouch Capital Markets, London explained: “The statement is like a Rorschach test: the hawks emphasize that the risks of prices are rough biased and that the box will continue to up Nakamura, the mentions of real negative salaries and caution notes. “
Joseph Capurso, Head of International and Sustainable Economics, Commonwealth Bank of Australia, Sydney: “They hinted a lot in the media that could do this, and they probably go up again this year. We believe they could do it twice more this year, although they could take time between increases.”
Boj’s decision
“The determination of the BOJ in the normalization of its policy should strengthen the trust between the Yen bullies and lead to a gradual, and sustainable luck, of the Yen. It could be expected that the pair will return to the range of 150/153,” ” Ipek Ozkardeskaya, Swissquote Bank’s Ipekya, in a report.
On Friday, the data showed that the underlying consumer prices of Japan increased by 3% in December compared to the previous year, which represents the fastest annual rhythm in 16 months. The attention is now focused on the press conference after the governor of the Bank of Japan, Kazuo Ueda, to obtain more clues about the rhythm and calendar of future types of types.
On the other hand, the Australian dollar and the New Zealander went up after Trump’s interview with Fox News issued Thursday night, in which he said he would prefer not to have to apply tariffs to China and that he thought he could
Source: Ambito
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