{"id":138792,"date":"2024-12-19T13:52:04","date_gmt":"2024-12-19T06:52:04","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=138792"},"modified":"2024-12-19T13:52:04","modified_gmt":"2024-12-19T06:52:04","slug":"bank-of-japan-holds-rates-at-0-25-yen-weakens-to-one-month-low","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=138792","title":{"rendered":"Bank of Japan holds rates at 0.25%, yen weakens to one-month low"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108078032\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>The Bank of Japan (BOJ) headquarters in Tokyo, Japan, on Thursday, Oct. 31, 2024. The Bank of Japan kept its benchmark interest rate unchanged while sticking to its view that it&#8217;s on track to achieve its inflation target, an outlook that points to the possibility of another rate hike in the coming months.\u00a0<\/p>\n<p>Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>The Bank of Japan on Thursday held its benchmark interest rate steady at 0.25%, opting to take the time to assess the impact of<strong> <\/strong>financial and foreign exchange markets on Japan&#8217;s economic activity and prices.<\/p>\n<p>The <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\"><a href=\"https:\/\/www.cnbc.com\/quotes\/JPY=\/\">yen<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> weakened 0.3% against the dollar after the rate decision, trading at 155.42 and hitting a one-month low. Meanwhile, the country&#8217;s <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-2\"><a href=\"https:\/\/www.cnbc.com\/quotes\/.N225\/\">Nikkei 225<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> was down 0.85%.<\/p>\n<p>The decision to hold rates surprised economists polled by Reuters, who had expected a 25 basis points hike.<strong> <\/strong>Stateside, the U.S. Federal Reserve on Wednesday <a href=\"https:\/\/www.cnbc.com\/2024\/12\/18\/fed-rate-decision-december-2024-.html\">cut rates by 25 basis points<\/a>, bringing the federal funds rate to 4.25%-4.5%.<\/p>\n<p>The BOJ said in its statement that the decision to hold was a split 8-1 decision, with board member Naoki Tamura advocating for a 25-basis-point hike.<\/p>\n<p>The central bank did note, however, that there &#8220;remain high uncertainties surrounding Japan&#8217;s economic activity and prices.&#8221;<\/p>\n<p>&#8220;In particular, with firms&#8217; behavior shifting more toward raising wages and prices recently, exchange rate developments are, compared to the past, more likely to affect prices,&#8221; the bank added.<\/p>\n<p>Analysts from investment bank Credit Agricole Securities Asia said the decision to leave rates unchanged was due to the BOJ&#8217;s inability to overcome opposition from the government for a third rate hike amid growing concerns that real GDP growth would be negative in 2024.<\/p>\n<p><a href=\"https:\/\/www.esri.cao.go.jp\/en\/sna\/data\/sokuhou\/files\/2024\/qe243_2\/pdf\/gaiyou2432_e.pdf\" target=\"_blank\" rel=\"noopener\">Japan&#8217;s GDP<\/a> has seen a year-on-year contraction for the first two quarters of this year, only recording a 0.5% gain in the quarter ending September.<\/p>\n<\/div>\n<div>\n<div class=\"Collapsible-proliveCollapsableContainer\" role=\"button\" tabindex=\"0\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"256\" height=\"256\" viewbox=\"0 0 256 256\" aria-labelledby=\"title desc\" role=\"img\" focusable=\"false\" preserveaspectratio=\"xMinYMin\" class=\"Collapsible-stockChartIcon\"><title>Stock Chart Icon<\/title><desc>Stock chart icon<\/desc><g transform=\"translate(1.4065934065934016 1.4065934065934016) scale(2.81 2.81)\"><path d=\"M 87.994 0 H 69.342 c -1.787 0 -2.682 2.16 -1.418 3.424 l 5.795 5.795 l -33.82 33.82 L 28.056 31.196 l -3.174 -3.174 c -1.074 -1.074 -2.815 -1.074 -3.889 0 L 0.805 48.209 c -1.074 1.074 -1.074 2.815 0 3.889 l 3.174 3.174 c 1.074 1.074 2.815 1.074 3.889 0 l 15.069 -15.069 l 14.994 14.994 c 1.074 1.074 2.815 1.074 3.889 0 l 1.614 -1.614 c 0.083 -0.066 0.17 -0.125 0.247 -0.202 l 37.1 -37.1 l 5.795 5.795 C 87.84 23.34 90 22.445 90 20.658 V 2.006 C 90 0.898 89.102 0 87.994 0 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 65.626 37.8 v 49.45 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 23.518 L 65.626 37.8 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 47.115 56.312 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 42.03 L 47.115 56.312 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 39.876 60.503 c -1.937 0 -3.757 -0.754 -5.127 -2.124 l -6.146 -6.145 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 59.844 C 41.952 60.271 40.933 60.503 39.876 60.503 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 22.937 46.567 L 11.051 58.453 c -0.298 0.298 -0.621 0.562 -0.959 0.8 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 48.004 L 22.937 46.567 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><\/g><\/svg><\/p>\n<div class=\"Collapsible-proLivePlayerCloseOrExpand\"><img decoding=\"async\" src=\"https:\/\/static-redesign.cnbcfm.com\/dist\/a54b41835a8b60db28c2.svg\" class=\"Collapsible-dismissButton\" alt=\"hide content\"\/><\/div>\n<\/div>\n<p><iframe title=\"Embedded Interactive Chart\" src=\"https:\/\/www.cnbc.com\/appchart?symbol=JPY%3D&amp;range=1M&amp;type=mountain&amp;embedded=true&amp;$DEVICE$=undefined\" height=\"460\" scrolling=\"no\" style=\"border:0;width:100%\"><\/iframe><\/p>\n<\/div>\n<div class=\"group\">\n<p>The BOJ&#8217;s decision was in line with a CNBC poll, which showed that 13 out of 24 economists expected the BOJ to keep its key interest rate unchanged in December before raising the rate at the next meeting in January. <\/p>\n<p>The survey was conducted between Dec. 9-13, before the Fed signaled that there would be fewer rate cuts in 2025.<\/p>\n<p>The BOJ &#8220;will resume its tightening cycle before long,&#8221; Marcel Thieliant, head of Asia-Pacific at Capital Economics said in a statement after the decision. Capital Economics expects a hike in January after a new set of economic forecasts come in.<\/p>\n<p>Thieliant added &#8220;it&#8217;s worth noting that, unlike in October, the decision to leave rates on hold was not unanimous,&#8221; pointing at Tamura&#8217;s vote to raise rates to 0.5%.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\"><a id=\"headline0\"\/>Economy still resilient<\/h2>\n<div class=\"group\">\n<p>Recent economic data from Japan is still currently supporting the case for a rate hike. Headline Inflation in October <a href=\"https:\/\/www.e-stat.go.jp\/en\/stat-search\/files?page=1&amp;layout=datalist&amp;toukei=00200573&amp;tstat=000001150147&amp;cycle=1&amp;year=20240&amp;month=24101210&amp;tclass1=000001150149&amp;result_back=1&amp;tclass2val=0\" target=\"_blank\" rel=\"noopener\">came in at 2.3%<\/a>, the 30th straight month that inflation has crossed the BOJ&#8217;s 2% target. November&#8217;s inflation data will come in on Friday.<\/p>\n<p>Business sentiment among large companies in Japan also came in higher than expected in the <a href=\"https:\/\/www.boj.or.jp\/en\/statistics\/tk\/gaiyo\/2021\/tka2412.pdf\" target=\"_blank\" rel=\"noopener\">latest BOJ Tankan survey<\/a>, with the index for large manufacturing firms climbed to 14 in the quarter ended December, up from 13 in the September quarter and beating the 12 expected from economists polled by Reuters.<\/p>\n<p>The index tracks business sentiment in the country among large companies and contributes to the BOJ&#8217;s considerations when forming monetary policy. A higher figure means that optimists outnumber pessimists, and vice versa.<\/p>\n<p>In a Dec. 13 note, analysts from Bank of America said that the December Tankan survey indicates Japan&#8217;s economy remains\u00a0resilient.<\/p>\n<p>They added that &#8220;this also confirms that the economy and inflation are trending in line with the BoJ&#8217;s base case scenario (which is its prerequisite for raising interest rates).&#8221;<\/p>\n<p>However, this does not mean that the need for a rate hike is urgent. The analysts said that imported inflationary pressure is receding, while companies&#8217;\u00a0medium-term inflation expectations remain stable despite the imminent start of President-elect Donald Trump&#8217;s administration and the risk of trade tariffs.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.cnbc.com\/2024\/12\/19\/bank-of-japan-holds-rates-at-0point25percent.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Bank of Japan (BOJ) headquarters in Tokyo, Japan, on Thursday, Oct. 31, 2024. The Bank of Japan kept its benchmark interest rate unchanged while sticking to its view that &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=138792\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-138792","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/138792","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=138792"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/138792\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=138792"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=138792"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=138792"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}