Bank of Japan (BOJ) policymakers are debating how soon they can start telegraphing an eventual interest rate hike, which could come even before inflation hits the bank's 2% target, emboldened by broadening price rises and a more hawkish Federal Reserve, Reuters reports, citing sources,
“While an actual rate hike is hardly imminent and the BOJ is on course to maintain ultra-loose policy at least for the rest of this year, financial markets may be underestimating its readiness to gradually phase out its once-radical stimulus program,” the sources added.
Market reaction
USD/JPY has lost further ground on these above headlines, currently hitting three-week lows of 113.75. The spot is down 0.33% on the day.
USD/JPY: 15-minutes chart
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