BoJ Hawks: Neutral Rate 'Considerably Above 1%'
BoJ board member Koeda delivered a string of hawkish signals, indicating the neutral rate is considerably above 1%, justifying September's rate hike and leaving the door open for further policy tightening.
What we know
In a series of statements captured by an account on X, BoJ board member Koeda indicated neutral rates stand 'considerably above 1%,' that underlying inflation is stabilising near the 2% target (another account on X), and that the September rate hike was backed by resilient economic data (another account on X). No specific rate-hike pace was determined (another account on X), but Koeda called for 'appropriate monetary policy adjustments' to manage upside price risks (another account on X). Combined with the hot US CPI, this marks a globally hawkish central bank backdrop.
How the story developed
BoJ board member Koeda delivered a string of hawkish signals, indicating the neutral rate is considerably above 1%, justifying September's rate hike and leaving the door open for further policy tightening.
BOJ's Koeda delivered notably hawkish commentary, saying Japan's neutral rate is considerably above 1% and the BOJ should hike 'in a timely manner.' Meanwhile, the Fed is 77% likely to hold rates at its October meeting, and CPI came in hotter than expected at 3.7%.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.