BOJ Rate Hike Falls Short as Global Central Banks Tighten

The Bank of Japan (BOJ) raised interest rates as expected, but its decision was seen as less hawkish than that of other central banks. This move broke a pattern of twice-yearly rate rises, which had been in place since the BOJ last increased rates three months ago.

However, with nearly three more US interest rate hikes priced in by mid-next year, and similar expectations for Europe and Britain, investors are watching closely to see how BOJ Governor Kazuo Ueda will address these expectations at his news conference. Two dovish dissents were also noted on Friday's decision.

Meanwhile, the escalating Middle East conflict has created new threats to global oil supplies, with Saudi Arabia and Yemen's Iran-backed Houthis exchanging fresh strikes across their border. Despite this, crude prices remained steady, hovering just above $100 a barrel and up nearly 15% so far this month.