BOJ rate hike and market impact (with Yvonne Man, David Ingles)

BOJ expected to hike to 1%, highest since 1995. Deputy Governor Uchida likely to deliver dovish tone to avoid market jolts, balancing inflation concerns with market stability. No clear signal on next rate hike timing.

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Taro Kimura 7.0

BOJ rate hike and market impact (with Yvonne Man, David Ingles)

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USD/JPY stuck at 160 despite rate hike expectations; BOJ actions may not significantly strengthen yen without more hawkish signals.

yields

BOJ hiking rates to 1% and potentially stopping tapering suggests upward pressure on yields, but dovish tone from Uchida may moderate the move.

Taro Kimura

BOJ will hike to 1%, highest since 1995, and likely stop tapering JGB purchases to calm bond markets.

The BOJ will admit long-term yields have been jittery and show it has its eye on the bond market.
Taro Kimura

Deputy Governor Uchida will likely deliver dovish remarks, similar to his 2023 intervention when he said BOJ won't hike when markets are jittery.

Carry trades are ramping up and a very hawkish signal would lead to a market jolt, so he will speak cautiously.
Taro Kimura

BOJ focus is half on markets, half on economy. Inflation pressure is looming with CPI likely above 3%, but they cannot sound very hawkish due to government stimulus concerns.

The BOJ will not signal timing of next rate hike and will likely explain cooler oil prices and a wait-and-see mode before proceeding.

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