BOJ Rate Hike Falls Short of Hawkish Expectations

The Bank of Japan (BOJ) raised interest rates as expected, but its decision to do so may be seen as a fraction less hawkish than its peers.

This move breaks a pattern of twice-yearly rate rises that the BOJ had followed. However, nearly three more US interest rate hikes are priced in by the middle of next year, with similar expectations for Europe and Britain.

The BOJ's Governor Kazuo Ueda will be closely watched during his news conference on Friday to see if he can hold those expectations.