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9:30 AM · 10 October 2024

USDJPY slightly loses amid hawkish BoJ member Himino remarks

Japanese yen strengthened slightly after BoJ member, Ryozo Himino signalled that the bank is ready to raise rates further, if economic expansion will materialize. Himino signalized that Japan economy started to move, and Japanese monetary policy should move also, accordingly. Record corporate profits and record high wages increase in the country are significant inflationary pressures. Overall, Himino signalized that if outlook from July will materialize, BoJ will have to increase interest rates, as many 'real rates' are as for now negative.

Also, former Bank of Japan executive, Kazuo Momma (now executive economist at Mizuho Research & Technologies) signalled, that 'If the Yen weakens to 150 or 155, it would move rate hike timing forward.' However, Japanese bankers will probably wait to the end of a year, for import prices reports and USDJPY fx rate, as well as wage hikes impact and next year's wage negotiations. 

 

Source: xStation5

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