You are visiting the website that is operated by Ultima Markets Ltd, a licensed investment firm by the Financial Services Commission “FSC” of Mauritius, under license number GB 23201593. Please be advised that Ultima Markets Ltd does not have legal entities in the European Union.
If you wish to open an account in an EU investment firm and protected by EU laws, you will be redirected to Ultima Markets Cyprus Ltd (the “CIF”), a Cyprus investment firm duly licensed and regulated by the Cyprus Securities and Exchange Commission with license number 426/23.
Tags: Bank of Japan, CPI, interest rates, JPY, USDJPY
On Thursday, the Bank of Japan maintained ultra-low interest rates and indicated a need to monitor global economic developments closely, emphasizing its attention to risks impacting Japan’s fragile domestic recovery when considering future policy tightening.
(Japan’s Core CPI and BOJ’s Policy Rate, Source: LSEG)
Governor Ueda’s comments appeared less dovish than before, suggesting that the BOJ can afford to spend time examining potential impacts from factors like U.S. economic uncertainties and financial market volatility. Consequently, the dollar briefly dipped to 152 yen from over 153 yen following Ueda’s remarks, which market participants interpreted as increasing the likelihood of a rate hike in December.
(USDJPY Daily Price Chart, Source: Trading View)
Recent Tokyo CPI data shows an expanding pass-through effect from rising wages into service prices. The central bank also projected that inflation would hover near its 2% target in the coming years, affirming its commitment to continue raising borrowing costs if economic recovery remains steady. Further analysis will be necessary to confirm whether this trend will extend nationwide.
Additionally, domestic data indicates that wage and price movements align with forecasts. Although downside risks to the U.S. and global economies have eased somewhat, other uncertainties persist, leaving the baseline outlook unclear. Taking further steps will only be considered as confidence in economic stability improves.
Disclaimer
Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.