The Bank of Japan is expected to hold a monetary policy meeting, with discussions likely to advance on raising the current policy rate of around 1% to around 1.25%. The US Federal Reserve decided to raise rates by 0.25%, drawing attention to future developments and the yen exchange rate.
The Bank of Japan is expected to hold a two-day monetary policy meeting starting today, with reports indicating that discussions will focus on raising the current policy rate of around 1% to around 1.25%.
Against a backdrop of higher crude oil prices stemming from the situation in the Middle East and a weaker yen, views are gaining ground that the need to respond to the risk of further inflation has increased.
Meanwhile, the US Federal Reserve reportedly decided to raise rates by 0.25% at its meeting through the 16th, and the yen exchange rate could move against the backdrop of the Fed's rate-hike policy, according to some observers.
The focus will be Governor Ueda's press conference after the meeting. The yen could move sharply depending on the outlook he presents for the pace and timing of future rate hikes.