Kueda, BOJ board member: Don't be overly cautious about raising interest rates

Source link: Kueda, BOJ board member: Don't be overly cautious about raising interest rates. Junko Koeda, a board member of the Bank of Japan (BOJ), said the bank should not be overly cautious in raising interest rates. Citing upside risks to prices and the continuation of accommodative conditions, she stressed the need to watch for the possibility of further rate increases. According to Koeda, the neutral interest rate is significantly above 1 percent; […] Source site:

Junko Kueda, a member of the Board of the Bank of Japan (BOJ), said that the bank should not jump in raising the interest rate more than cautiously by $60 for gold; Is China behind the US bond market? At a glance, gold rose around $60 in Asian trading and the 10-year Treasury bond yield remained at a five-year high after Australia's unemployment rate; The probability of interest rate increase decreased. At a glance, Australian employment decreased by 39,300 people in September; At the same time, the stock market of chip makers fell and concerns about interest rates; A 2% drop in the Nasdaq index of the American stock market was faced with a decrease in value due to a further drop in the shares of semiconductor companies and inflation exceeding expectations. The US Army announced the destruction of an Iranian-affiliated vessel in the Oman Sea. The US Army announced that its forces destroyed an Iranian-affiliated vessel in the Oman Sea on October 6. Goolsby, a member of the Federal Reserve: the inflation statistics were disappointing; Monetary policy must respond Federal Reserve member Goolsby called the consumer price index data "disappointing" and said that if current levels of inflation persist, subscribe to the YouTube Times newsletter for updates.

Bank of Japan (BOJ) board member Junko Kueda said the bank should not be too cautious in raising interest rates. Referring to the rising risks of prices and the continuation of expansionary conditions, he emphasized the need to pay attention to the possibility of further increases in rates. According to Queda, the neutral interest rate is significantly higher than one percent; While the current policy rate is around 1.25%.

Queda's comments have a contractionary tone, suggesting further interest rate hikes are still on the table. The USDJPY pair had already fallen at the same time as US Treasury bond yields fell, and Queda's words could strengthen this trend.

These comments may support the yen; Especially in a situation where expectations for the Federal Reserve's interest rate hike have also risen. Such a situation can limit the yen's weakening power based solely on interest rate differences.

Queda also said that the yen has lost some of its safe-haven status. This is important for currency traders, as it suggests that geopolitical shocks may put pressure on the yen, rather than strengthening it, by increasing the cost of oil imports.

Japanese government bond yields may also face upward pressure if interest rates move towards neutral more quickly. Queda's message to the markets is that the 1.25% rate is not the end of the road and excessive caution should not slow down the process.