BoJ is reportedly likely to keep rates steady in January; some officials are said to be concerned over the economic impact of a weak JPY, Bloomberg reports
- If the JPY continues to weaken, then the pace of future rate hikes could be accelerated. But, policy will remain on hold in January.
- Possible that the negative aspects such as a further JPY depreciation and the impact on personal consumption, will become a point of concern.
Reaction details (09:18)
- Immediate pressure in USD/JPY, which fell from 158.68 to 158.33, before stabilising around 158.49.
- Market pricing currently implies a 25bps hike in September (+26bps implied), with around 13bps of additional tightening implied by end-2026, pricing that has tilted marginally more hawkish over the last week.
15 Jan 2026 - 09:15- ForexImportant- Source: Market Source/Bloomberg
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