Yen Little Moved as BOJ Sends Hawkish Signals

Dow Jones
Aug 27

0900 GMT - Traders looked to comments by the BOJ's Himino for reassurance that a September rate hike is coming, though the yen's reaction suggests the messaging was more measured than some hoped. While the yen's slight weakening indicates some disappointment that Himino wasn't more explicit, his tone is consistent with a policy board that appears to be considering faster tightening, in endorsing market pricing for a September rate hike, says MUFG's Derek Halpenny. Himino stressed the need to be more alert to inflation risks, which Halpenny says is "the closest you will get to guidance that the pace of rate hikes could be increased." Healso confirmed the BOJ doesn't need full data on past hikes before moving again. With nearly all rate-hike pricing intact, MUFG thinks the BOJ has given a clear signal of intent.

 

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