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Interests rate went up from 0.1 to 0.25%. The BoJ chairman said in the Q&A afterwards that he sees them raising rates above 0.5%, possibly by year end. The Bo
by SenHeng 2y ago
Interests rate went up from 0.1 to 0.25%.
The BoJ chairman said in the Q&A afterwards that he sees them raising rates above 0.5%, possibly by year end.
The BoJ is also cutting back on the number of government bonds they're buying by half, from 6 trillion yen to 3 trillion yen each quarter.
The yen strengthened a lot in the past 2 weeks, from $1 / 160yen to $1 / 143 yen. This likely triggered a lot of margin calls, exacerbating the drop.
Basically, it was an aggressive and unexpected move.
> If Ueda's goal was to change his dovish image, he was clearly successful. "He sounded very hawkish today," said Hideo Kumano, chief economist at the Dai-ichi Life Research Institute. "He has made the market think more rate hikes are on the way."
> Only 26% of market players expected a rate rise, according to a survey of 181 bond investors conducted by Nikkei affiliate QUICK on July 23-25. Most investors expected a rate increase to take place either in September or October.
source: https://asia.nikkei.com/Economy/Bank-of-Japan/Bank-of-Japan-raises-interest-rate-to-0.25-open-to-further-hike-this-year https://asia.nikkei.com/Economy/Bank-of-Japan/Bank-of-Japan-...