BOJ governor Ueda says will not comment on short-term FX moves

• Will scrutinise how FX moves affect economy, price forecasts at each policy meeting
• There are numerous factors we want to check, including the US economy
• But won’t necessarily wait until there is clarity for all of them
• Will check them at each policy meeting in deciding policy
• If we don’t adjust degree of monetary support appropriately, could be forced into rapid rate hikes

He’s sort of leaving the door open for a potential move in December. And as things stand, market players are also rather torn. The OIS market is currently pricing in a ~53% probability of a 25 bps rate hike next month. The remainder is tied to the BOJ leaving its policy rate unchanged instead.

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