FOCUS: Yen, Oil Prices May Pick up BOJ Rate Increase Even After Hike to 31-Year High

BOJ will hike rates again by December, 90% of economists say

A key question is whether or not the BOJ needs to act a little faster than its widely seen pace of moving once every six months.

FOCUS: Yen, oil prices may pick up BOJ rate increase even after hike to 31-year high

Facing a greater risk of faster price rises from a surge in oil prices coupled with a weaker yen, the Bank of Japan may need to accelerate the pace of policy interest rate hikes to guide inflation to its 2 percent target, economists say.

This ETF May Benefit From a BOJ Rate Hike

Yields on 10-year Japan government bonds touched a 30-year high last month. Now market participants are pondering the effects of those higher yields on stocks in the Land of the Rising Sun. That’s sure to direct attention to the Bank of Japan (BOJ) meeting later this month. The central bank could very well tighten borrowing costs at that meeting. That outcome wouldn’t necessarily be bad news for Japan stocks and ETFs such as the WisdomTree Japan…

USD/JPY Analysis: BoJ Tightens the Grip — Will the Yen Reverse Course? - ActionForex

On June 16, the Bank of Japan raised its policy rate to 1.0% (7-1 vote) and confirmed a gradual taper of government bond purchases, settling at a “cruising” pace of ¥2 trillion monthly from April 2027. The message is clear: normalisation continues, as inflation risks remain skewed to the upside of the 2% target. For […] The post USD/JPY Analysis: BoJ Tightens the Grip — Will the Yen Reverse Course? appeared first on ActionForex.

USD/JPY Analysis: BoJ Tightens the Grip — Will the Yen Reverse Course?

On June 16, the Bank of Japan raised its policy rate to 1.0% (7-1 vote) and confirmed a gradual taper of government bond purchases, settling at a "cruising" pace of ¥2 trillion monthly from April 2027. The message is clear: normalisation continues, as inflation risks remain skewed to the upside of the 2% target.For the yen, the medium-term picture remains constructive, though not without friction — one dissenter warned that Middle East tensions …