One dissent on the Bank of Japan board, and the market is already asking what comes next 🇯🇵
The BOJ held its policy rate at 1.25%, as expected, at its latest meeting. The vote was 8-1, with board member Takeda Soh dissenting. The previous meeting, which delivered a 25 bp hike, was 7-2.
Why it matters: the BOJ said underlying inflation has reached a level consistent with its price target. It also raised its core CPI forecast for FY2027 to 2.6% from 2.4% in July. FY2026 stays at 2.5% and FY2028 at 2.0%. It warned that the risk of inflation overshooting needs special attention.
For markets, this is a hold with a hawkish tone. The yen and JGB yields are the first to watch, because any hint of another hike tightens global liquidity. That adds to a Fed that already raised rates on 16/09.
For crypto, my view is that this is a risk for $BTC, not a catalyst yet. A faster BOJ would revive yen carry-trade unwind fears. Watch the next meeting's vote split: if the dissent count grows, would you still trust the hold?
#BOJ #InterestRates #JPY
The BOJ held its policy rate at 1.25%, as expected, at its latest meeting. The vote was 8-1, with board member Takeda Soh dissenting. The previous meeting, which delivered a 25 bp hike, was 7-2.
Why it matters: the BOJ said underlying inflation has reached a level consistent with its price target. It also raised its core CPI forecast for FY2027 to 2.6% from 2.4% in July. FY2026 stays at 2.5% and FY2028 at 2.0%. It warned that the risk of inflation overshooting needs special attention.
For markets, this is a hold with a hawkish tone. The yen and JGB yields are the first to watch, because any hint of another hike tightens global liquidity. That adds to a Fed that already raised rates on 16/09.
For crypto, my view is that this is a risk for $BTC, not a catalyst yet. A faster BOJ would revive yen carry-trade unwind fears. Watch the next meeting's vote split: if the dissent count grows, would you still trust the hold?
#BOJ #InterestRates #JPY
