BoJ Set to Continue Rate Hikes Amid Accommodative Financial Conditions

The Bank of Japan (BoJ) is set to continue raising interest rates due to current accommodative financial conditions, according to Masu. This comes as the USD/JPY pair is up 0.05% on the day at 153.60.

The BoJ's policy has been a subject of debate in recent years, with the bank embarking on an ultra-loose monetary policy in 2013 to stimulate the economy and fuel inflation amid a low-inflationary environment.

In 2024, the BoJ lifted interest rates, effectively retreating from its ultra-loose monetary policy stance. This move was seen as a response to the country's increasing inflation rate, which exceeded the BoJ's 2% target due to a weaker Yen and spike in global energy prices.