Bank of Japan: Market-priced hike to 1.25% – Danske Bank
Danske Research Team expects the Bank of Japan to raise its policy rate to 1.25%, a move they say is largely priced in as market expectations tightened in recent weeks.
The Bank of Japan is expected to raise its policy rate to 1.25%, a move that has largely been priced in by investors as market expectations have tightened significantly in recent weeks. The Bank of Japan will make the decision overnight, and Governor Ueda is not expected to push against this move. The hike reflects a more nimble approach to tightening compared to the cautious cycle witnessed so far. Any deviation could weigh heavily on the Japanese Yen, especially as core CPI pressures are beginning to pick up.
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