Japanese Yen Rises After BOJ’s Ueda Says Rate Hike Is Possible With Economic Progress By Investing.com
Investing.com– The Japanese yen strengthened on Wednesday after Bank of Japan (BOJ) Governor Kazuo Ueda hinted that the central bank may consider hiking if economic and price conditions continue to improve.
Ueda said the timing of the interest rate hike will largely depend on the economic policies of the new US administration and the progress of this year’s wage negotiations in Japan.
The yen pair fell 0.4% on Wednesday, meaning the yen gained 0.4% against the US dollar.
A day earlier, BOJ Deputy Governor Ryozo Himino said the central bank may consider raising rates at its upcoming policy meeting, citing sustained wage growth.
Recent economic indicators show that the Japanese economy is experiencing modest growth. In the third quarter, the economy grew at an annual rate of 1.2%, driven by increased consumption and a stable labor market.
In March of last year, the BOJ abolished its negative interest rate policy, and by July it had increased the short-term interest rate to 0.25%.
It is now considering further interest rate hikes as inflation is consistently above the central bank’s 2% target.
The next BOJ policy meeting is scheduled for January 23 and 24.
