Foreign exchange market data from sources like Bloomberg or Reuters

BOJ Eyes 0.5% Rate Hike to 17-Year High on January 23-24

Jan 17, 2025, 02:04 AM

The Bank of Japan (BOJ) is poised to consider a rate hike at its upcoming policy meeting on January 23-24, with Governor Kazuo Ueda indicating that the decision will hinge on economic and price conditions. Ueda has expressed readiness to discuss and potentially implement a rate increase to 0.5%, which would mark a 17-year high, influenced by positive wage trends reported by business leaders and BOJ branch managers. Market expectations for a rate hike have surged, with over 70% of BOJ watchers anticipating an increase, according to Bloomberg. The yen has strengthened to the mid-155 level against the dollar, its highest since the previous BOJ meeting, reflecting these expectations. The BOJ's potential move comes as Japan's wholesale inflation remains steady near 4%, fueling speculation of tighter monetary policy. The decision by the BOJ's nine-member policy board will also consider the impact of U.S. President-elect Donald Trump's inauguration and his subsequent statements, as the BOJ aims to navigate domestic economic challenges amidst global uncertainties.