BOJ’s Policy Rate Likely to Reach 2% by End of 2027, OECD Says

The Bank of Japan left its benchmark interest rate unchanged in a split vote, increasing the odds of a June hike and pushing the yen higher. The decision signals a more hawkish policy bias even as officials held rates steady for now. This is market-wide relevant for Japanese rates and FX, with implications for global yield differentials.

Analysis

The Bank of Japan left its benchmark interest rate unchanged in a split vote, increasing the odds of a June hike and pushing the yen higher. The decision signals a more hawkish policy bias even as officials held rates steady for now. This is market-wide relevant for Japanese rates and FX, with implications for global yield differentials.