Reuters Post a piece with a good explanation if you want another preview.
previously:
- Bank of America expects BoJ rate hike today… see USD/JPY (finally) at 145
- Bank of Japan Decision Day: Will Interest Rates Rise or Stay Steady?
There was a leak overnight:
- Bank of Japan Discusses Raising Interest Rate to 0.25% – Report
- Another leak from the Bank of Japan says 0.25% is under consideration
- Nikkei repeats worst-kept secret: Bank of Japan considers raising interest rates to 0.25%
- US Forex Market News Summary: Bank of Japan Leaks Possibility of 15 Basis Point Rate Hike
The Bank of Japan is set to announce today its plans to scale back its massive purchases of Japanese government bonds.
- The European Central Bank is likely to halve its monthly bond purchases in a year and a half to two years — a pace roughly in line with broad market expectations.
They will also discuss whether interest rates should be raised. See the posts about the leak above. Talking about hiking isn’t necessarily the same thing as hiking, of course.
Not everyone agrees that there will be a price hike. This is before the leaks mentioned above:
- 5 Reasons the Bank of Japan is Cautious About Hiking Rates This Week
- Mitsubishi UFJ Bank expressed concern that the lack of guidance from the Bank of Japan at this week’s meeting means no interest rate hike until December.
Bank of Japan Governor Ueda will hold a press conference at 0630 GMT.
This article was written by Eamonn Sheridan on www.forexlive.com.