The Bank of Japan kicked off a global market selloff last time it raised interest rates. The likely rate increase this week will be less dramatic, but the real suspense lies in what comes next for the yen.
Nomura's head of FX strategy, Japan, Yujiro Goto believes that Japan is not affected by Trump's initial slew of tariffs. He sees a 25 basis point hike in January as certain barring any black swan events.
The move would mark the central bank's first rate hike since July last year, when it increased rates to 0.25%.
Japan’s biggest banks are nearing a key valuation level for the first time in almost a decade as investors bet that the Bank of Japan will raise interest rates on Friday and accelerate its normalisation of monetary policy.
The Bank of Japan is likely to raise rates at its January 24 meeting following recent supportive comments from BoJ governor Kazuo Ueda and deputy Ryozo Himino.
Bank of Japan is expected to hike rates, potentially causing market volatility, but it may be different due to market expectations and dovish narratives. Read what investors need to know.
Japan's government is likely to submit a nominee on Jan. 28 to fill a seat on the central bank's board that opens up in March, three government and ruling party sources told Reuters.
After decades of weak prices and feeble economic growth, Japan appears close to achieving stable inflation with solid wage growth, enabling the BOJ to push borrowing costs up.
Visitor numbers are set to rise to 40.2 million in 2025, driven by the weak yen and the World Expo 2025. Read more at straitstimes.com.
Japan's core machinery orders rose 3.4% in November from the previous month to beat analysts' forecast, government data showed on Monday, signalling a recovery in capital expenditure ahead of a central bank interest rate review later this week.
Outstanding bank lending in Japan stood at a record high of ¥605.8 trillion at the end of 2024, up 4.4% from a year before, according to industry data.
The Bank of Japan concludes its first policy meeting of the year on Friday with the outcome to be announced days after the inauguration of U.S. President Donald Trump. Here is a guide on what to expect and why the BOJ's rate review matters: WHEN DOES THE BOJ MEETING TAKE PLACE?