Wire · operational-macro
BOJ set to keep policy rate steady to gauge impact of hike to 31-yr high
The Bank of Japan is expected to keep its benchmark interest rate steady at 1.0%, a 31-year high, to evaluate the impacts of the recent hike, a weaker yen, and supply chain disruptions from a recent earthquake. The central bank is also monitoring strong AI-related demand which may lead to an upward revision of its economic growth outlook.
◆ ◆ The Wire takeaway
Japan has confirmed its exit from the cheap money era, locking in a higher cost of capital. Expect the yen to remain weak against the dollar, giving you a persistent pricing advantage if you sell from Japan and a cost advantage if you employ staff there.
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japaninterest-ratesmonetary-policyyen-fxcentral-banks