{"id":89262,"date":"2024-08-08T11:35:03","date_gmt":"2024-08-08T08:35:03","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=89262"},"modified":"2026-02-04T09:59:03","modified_gmt":"2026-02-04T07:59:03","slug":"boj-showcases-a-willingness-to-hike-rates-further","status":"publish","type":"post","link":"https:\/\/www.smartchinaeducation.com\/ms\/boj-showcases-a-willingness-to-hike-rates-further\/","title":{"rendered":"BOJ showcases a willingness to hike rates further"},"content":{"rendered":"

The BOJ\u2019s summary of opinions <\/a>for their July meeting was released during today\u2019s Asian session. Within the statement, it appears that BOJ policymakers debated on whether or not to raise the monetary policy rate even further, having stated that \u201cThe current economic situation seems to be favorable enough that the Bank can raise the significantly low policy interest rate to some degree\u201d. The mention that the interest rates are \u201csignificantly low\u201d tends to imply a willingness by the bank to raise rates more aggressively, which in turn may aid the JPY. However, the recent developments in which the carry trade appears to be unwinding, in combination with some concerns about the \u2018health\u2019 of the global financial markets, may disrupt the BOJ\u2019s ambitions. Moreover, in the SOP the neutral rate  \u201cseems to be at least around 1%\u201d. Nonetheless, the overall document appears to have been hawkish in nature. RBA Governor Bullock\u2019s comments yesterday appear to have been hawkish in nature, with the Governor stating per Reuters that the bank won\u2019t hesitate to raise rates if needed. The implications of the RBA hiking interest rates could potentially aid the Aussie. Our concern is that should interest rates remain higher for longer with the possibility of more rate hikes in the future, it could bring the Australian economy to the brink of a recession, which may force the bank\u2019s hand.In Canada, the Ivey PMI figure for July, came in lower than expected, which may imply that the manufacturing sector of  the Canadian economy continues to expand, but at a slower pace than expected which could weigh on the Loonie should other financial releases imply a possible slowdown of manufacturing activity. According to the FT, Google (#GOOG) and Meta (#FB) made a secret deal to target advertisements for Instagram to teenagers on YouTube. The plot to \u201ctarget 13- to 17 \u2013 year old Youtuber users\u201d, could weigh on their stock prices.<\/p>\n\n\n\n

\n