Select Language

Markets price-in a BOJ policy rate of 0.75% by year-end - BBH

Breaking news

Markets price-in a BOJ policy rate of 0.75% by year-end - BBH

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.02.06 20:33
Markets price-in a BOJ policy rate of 0.75% by year-end - BBH

update 2025.02.06 20:33

JPY is outperforming. Bank of Japan (BOJ) policy board member Naoki Tamura argued for a faster normalization cycle, BBH FX analysts note.

BOJ expects inflation to stabilize around its 2% target in 2026

"Tamura said 'raising short-term interest rates to at least around 1% in the latter half of fiscal 2025 is necessary to reduce upside risk to prices and achieve the price stability target in a sustainable and stable manner.'"

"Tamura is the most hawkish board member as he was the only one to vote in favor of a rate hike in December 2024. Markets continue to price-in a BOJ policy rate of 0.75% by year-end and a terminal rate of 1.00% over the next two years."

"This seems about right as the BOJ expects inflation to stabilize around its 2% target in 2026. The limited room for a further upward adjustment to BOJ rate expectations curtails JPY upside."


Date

Created

 : 2025.02.06

Update

Last updated

 : 2025.02.06

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

EUR/GBP rallies to near 0.8380 after BoE's dovish interest rate decision

The EUR/GBP pair surges and posts a fresh weekly high to near 0.8380 in Thursday's North American session.
New
update2025.02.06 23:06

US: Initial Jobless Claims rose to 219K last week

US citizens filing new applications for unemployment insurance rose to 219K for the week ending February 1, as reported by the US Department of Labor (DoL) on Thursday.
New
update2025.02.06 22:54

GBP/USD slides further after expected BoE rate cut - Scotiabank

The Pound Sterling (GBP) slid in the wake of the BoE rate decision, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
update2025.02.06 22:45

EUR/USD: Ignores stronger German Factory Orders data - Scotiabank

German Factory Orders data for December rose a solid 6.9% in the month, versus expectations for a 2.0% gain, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
update2025.02.06 22:41

CAD: Spreads remain a big impediment to a stronger rebound - Scotiabank

The softer CAD reflects the general trend in the majors against the broadly higher USD on the session.
New
update2025.02.06 22:38

USD strengthens modestly - Scotiabank

The US Dollar (USD) is trading a little higher overall this morning, partially reversing three days of losses following the tariff turmoil at the start of the week, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
update2025.02.06 22:26

GBP/JPY dives to near 188.40 as all BoE members support 25-bps interest rate reduction

The GBP/JPY pair faces an intense sell-off and dives vertically to near 188.40 in Thursday's North American session, the lowest level seen in two months.
New
update2025.02.06 22:08

Bailey speech: Government commitment to long-term structural reforms will help confidence

Bank of England (BoE) Governor Andrew Bailey speaks on the policy outlook and responds to questions from the press following the decision to lower the policy rate by 25 basis points (bps) at the February meeting.
New
update2025.02.06 21:52

Bailey speech: Consumers are more price conscious and holding back on spending

Bank of England (BoE) Governor Andrew Bailey speaks on the policy outlook and responds to questions from the press following the decision to lower the policy rate by 25 basis points (bps) at the February meeting.
New
update2025.02.06 21:43

Bailey speech: We expect to be able to cut bank rate further

Bank of England (BoE) Governor Andrew Bailey speaks on the policy outlook and responds to questions from the press following the decision to lower the policy rate by 25 basis points (bps) at the February meeting.
New
update2025.02.06 21:36

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel