The Bank of Japan is reportedly planning to keep its policy rate unchanged at its 30-31 monetary policy meeting, while the market is watching both the possibility of an accelerated pace of rate hikes and growing concern over yen depreciation.
The Bank of Japan is reportedly planning to keep its policy rate unchanged at its 30-31 monetary policy meeting. It intends to assess on an ongoing basis the impact of raising the policy rate from around 0.75% to around 1.0% at its previous meeting in June.
While views remain that the Bank may accelerate the pace of rate hikes, concern over the yen’s continued depreciation is also intensifying, and the direction of future policy management is drawing attention.
Some market participants believe that changes to policy management, including greater flexibility in the operation of yield curve control (YCC), could be considered. Specific decisions, however, are expected to be communicated again after the meeting.