From earlier: BOJ reportedly likely to raise interest rates later this month
The report above looks to seal the deal on a rate hike by the BOJ for December, with policymakers hoping to sneak in one last rate hike before their timing window closes. As mentioned then, the optics would've been better had they moved in October but better late than never I guess.
Japan prime minister Takaichi has been very vocal in wanting the BOJ to refrain from rate hikes but alas, she might just have to tolerate one more despite her fiscal plans. 10-year JGB yields continue to soar, rising by over 4 bps today to 1.94%. Ouch.
This is keeping the yen more bid as well, with USD/JPY now once again testing waters below the 155.00 mark. The drop at the start of the week was defended into the daily close, so that will once again be the point of interest on the charts for the day ahead. The pair is now down 0.2% to fresh lows of the day of 154.90.
A firm break below that could set the pair on course towards the early November lows of 152.80-00 next for starters.
In the bigger picture though, the yen may still come under scrutiny and pressure amid Takaichi's fiscal dovishness while the BOJ might struggle in securing another rate hike after this one.
