Select Language

BoJ's Ueda: Will respond nimbly in case of rapid rise in long-term interest rates

blockHeadVisual
  1. HOME
  2. Get information
  3. World FX news
  4. BoJ's Ueda: Will respond nimbly in case of rapid rise in long-term interest rates

World FX news

search
Breaking news

BoJ's Ueda: Will respond nimbly in case of rapid rise in long-term interest rates

  • X
  • facebook
  • LINE
  • RSS
  • X
  • facebook
  • LINE
  • RSS
update 2025.06.17 15:38
BoJ's Ueda: Will respond nimbly in case of rapid rise in long-term interest rates

update 2025.06.17 15:38

Bank of Japan (BoJ) Governor Kazuo speaks at a press conference on Tuesday, explaining the Bank's decision to hold the interest rate at 0.5% for the third straight meeting.

Additional quotes

Showed JGB buying plans through March 2027 to allow flexibility, predictability.

Will respond nimbly in case of rapid rise in long-term interest rates such as by increasing bond buying, conducting fixed-rate bond purchase operations, using fund-supply operations against pooled collateral.

Japan's economy is recovering moderately, although some weak moves are seen.

Easy monetary conditions will support economy.

Japan's economic growth likely to moderate as trade policies lead to slowdown in overseas economy, decline in corporate profits.


 developing story ....

Market reaction

USD/JPY remains offered following these comments. The pair was last seen trading 0.08% lower on the day near 144.60.

Central banks FAQs

Central Banks have a key mandate which is making sure that there is price stability in a country or region. Economies are constantly facing inflation or deflation when prices for certain goods and services are fluctuating. Constant rising prices for the same goods means inflation, constant lowered prices for the same goods means deflation. It is the task of the central bank to keep the demand in line by tweaking its policy rate. For the biggest central banks like the US Federal Reserve (Fed), the European Central Bank (ECB) or the Bank of England (BoE), the mandate is to keep inflation close to 2%.

A central bank has one important tool at its disposal to get inflation higher or lower, and that is by tweaking its benchmark policy rate, commonly known as interest rate. On pre-communicated moments, the central bank will issue a statement with its policy rate and provide additional reasoning on why it is either remaining or changing (cutting or hiking) it. Local banks will adjust their savings and lending rates accordingly, which in turn will make it either harder or easier for people to earn on their savings or for companies to take out loans and make investments in their businesses. When the central bank hikes interest rates substantially, this is called monetary tightening. When it is cutting its benchmark rate, it is called monetary easing.

A central bank is often politically independent. Members of the central bank policy board are passing through a series of panels and hearings before being appointed to a policy board seat. Each member in that board often has a certain conviction on how the central bank should control inflation and the subsequent monetary policy. Members that want a very loose monetary policy, with low rates and cheap lending, to boost the economy substantially while being content to see inflation slightly above 2%, are called 'doves'. Members that rather want to see higher rates to reward savings and want to keep a lit on inflation at all time are called 'hawks' and will not rest until inflation is at or just below 2%.

Normally, there is a chairman or president who leads each meeting, needs to create a consensus between the hawks or doves and has his or her final say when it would come down to a vote split to avoid a 50-50 tie on whether the current policy should be adjusted. The chairman will deliver speeches which often can be followed live, where the current monetary stance and outlook is being communicated. A central bank will try to push forward its monetary policy without triggering violent swings in rates, equities, or its currency. All members of the central bank will channel their stance toward the markets in advance of a policy meeting event. A few days before a policy meeting takes place until the new policy has been communicated, members are forbidden to talk publicly. This is called the blackout period.

Date

Created

 : 2025.06.17

Update

Last updated

 : 2025.06.17

Related articles

Show more

Writer

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?
No loading Yes loading

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.

Previous article

prev

FX option expiries for Jun 17 NY cut

Next article

EUR/GBP extends the rally above 0.8500 ahead of ZEW Economic Sentiment Surveys

prev

Most viewed

USD/BRL holds ground near 5.60 after rising sharply due to Trump's 50% tariff on Brazil

USD/BRL remains stronger after registering approximately 2.5% gains in the previous session, trading around 5.60 during the European hours on Thursday.
New
update2025.07.10 17:13

EUR/USD appreciates within range as the market digests Trump latest tariff threats

The EUR/USD pair advances on Thursday with a moderate risk appetite returning to the markets.
New
update2025.07.10 17:00

Silver Price Forecast: XAG/USD returns above $36.50 buoyed by a softer US Dollar

Silver (XAG/USD) appreciated on Thursday, with precious metals drawing support from a somewhat weaker US Dollar, as Treasury yields dropped on the back of dovishly tilted FOMC minutes and a strong auction of US bonds on Wednesday.The minutes of the last Federal Reserve meeting confirmed a deep diver
New
update2025.07.10 16:54

EC President von der Leyen: Working non-stop to find an initial agreement with the US

European Commission President Ursula von der Leyen said on Thursday, "we are working non-stop to find an initial agreement with the US to keep tariffs as low as possible and to provide the stability that businesses need."
New
update2025.07.10 16:38

AUD/JPY rebounds toward 96.00 near five-month highs

AUD/JPY rises after registering mild losses in the previous session, trading around 95.90 during the European hours on Thursday.
New
update2025.07.10 16:36

Pound Sterling edges up against US Dollar amid US tariff uncertainty

The Pound Sterling (GBP) ticks up to near 1.3600 against the US Dollar (USD) during the European trading session on Thursday.
New
update2025.07.10 16:35

US Dollar Index stabilizes around 97.40 after Trump's latest tariffs, Fed minutes

The US Dollar (USD) trades broadly stable during European trading hours on Thursday, while United States (US) President Trump announces the latest salvo of tariffs.
New
update2025.07.10 16:31

WTI inches higher to near $67.50 despite rising global demand concerns

West Texas Intermediate (WTI) Oil price extends its winning streak for the fourth consecutive day, trading around $67.40 per barrel during the early European hours on Thursday.
New
update2025.07.10 16:11

NZD/USD Price Forecast: Retains bullish bias above 0.6000 above the 100-day EMA

The NZD/USD pair attracts some buyers near 0.6010 during the early European session on Thursday, bolstered by a softer US Dollar (USD). The US weekly Initial Jobless Claims will be in the spotlight later on Thursday.
New
update2025.07.10 15:56

Crude Oil price today: WTI price bullish at European opening

West Texas Intermediate (WTI) Oil price advances on Thursday, early in the European session. WTI trades at $67.36 per barrel, up from Wednesday's close at $67.32.Brent Oil Exchange Rate (Brent crude) is also up, advancing from the $69.61 price posted on Wednesday, and trading at $69.67.
New
update2025.07.10 15:11

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.

arw
  • 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
Line

Line
Facebook

Facebook
X

Twitter
Cancel