BOJ reportedly sees little cost to waiting for next rate hike

Bloomberg is reporting that the Japanese central bank is seeing little cost to waiting for the next rate hike. The report does note that some policymakers are not against a rate hike in December if it were to be proposed. Adding that the officials are said to see the next rate hike as a question of when and not if, with it only being “a matter of time”.

However, the headline pointer sort of takes the edge off that especially if policymakers are open to sit on their hands next week. Besides that, they see less risk of a weaker yen pushing up inflation pressures at this stage.

The headlines here are sending USD/JPY for a bit of a spin on the day. The pair quickly dipped to a low of 150.99 before recovering by roughly 100 pips to 151.95 right after. As things stand, traders are pricing in just ~26% odds of the BOJ hiking by 25 bps next week.

This article was written by Justin Low at www.forexlive.com.