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Japanese Governor Kazuo Weda answers questions during the talk of governors about Japanese inflation and monetary policy at the International Monetary Fund (IMF) and at a meeting of the World Bank in Washington, USA, October 23, 2024.
Kaylee Greenlee Beal | Reuters
On Friday, the Bank of Japan came to 25 basic points to 0.5%, giving its political level to the highest level since 2008, as it seeks to normalize its monetary policy.
This step meets the CNBC poll expectations of January 15-20 in which they saw The vast majority of economists predict the hike.
In his statement, Boj showed that the decision was 8-1, a member of the Board of Toyoaki Nakamura disagreed.
Nakamura stated that the Central Bank should make changes to politics only after confirming the increase in the strength of the firms from the reports that would be released at the next session of the monetary policy.
After that solution Japanese yen poorly weakened to trade in 156.09 against the dollar, while the landmark of the country Nikkei 225 The stock index increased by 0.59%.
The yield on 10-year Japanese government bonds increased by 1.8 basic point to 1.223%.
Senior officials Boj, including Governor Kazuo Wada and Deputy Governor Rio Khin, have shown that the Central Bank’s readiness will increase rates.
Boj will closely watch the talks on the wages of the “Shunt”, and hopes to see “strong hiking for wages” in the financial year in 2025, Kehimno said in a speech with business executives on January 14.
In a note on January 21 Vincent Chung, CO-Portfolio manager on a diversified bond strategy at T. Rowe PRice, stated that moving forward, after an increase in the rate there would be “a number of gradual campaigns that will potentially lead to a policy rate by the end of the year” .
He added that the policy speed could even exceed 1%, as it is closer to the lower end of the BOJ neutral speed.
In September Member of Board Boj Naoki Tamura said neutral speed “It would be at least 1 percent,” though there is no official neutral speed in Boj.
Chung noted that while Japanese officials claimed that instability it was of a significant, any significant currency similar to the past year seems unlikely.
Last July he reached its weak level against dollar since 1986reaching 161.96. Japanese authorities later confirmed that they spent 5.53 trillionEither $ 36.8 billion to pull up the ENU in July.
Japan Spent more than 15.32 trillion ($ 97.06 billion) to attract currency during 2024.
Chung said that inflation in the US could increase later in this quarter and in conjunction with sustainable economic growth, it could pressure the growth on the yield, which can strengthen the dollar – the weakening of the yen.
“Investors also need to consider that with potential serious changes in trading and the Fed approach the pause, two -sided risks probably this year than in 2024. So we expect the realized volatility to USD/ JPY will remain high in this 2025, “he concludes.
