BoJ Governor Ueda says there are possibilities of a rate hike if either upward risks to prices emerge or downside risks to the economy are limited

Newsquawk StaffPublished
Newsquawk headlinesUTC

Every headline is on the live feed 20 minutes before this site.

BYD (1211 HK) is to raise the price of assistant driving system to CNY 12k (prev. CNY 9.9k), effective May 1

Iran’s Deputy Defence Minister Talaei-Nik says Tehran is ready to share its defensive weapons capabilities with members of Shanghai Cooperation Organisation

BoJ Governor Ueda says there are possibilities of a rate hike if either upward risks to prices emerge or downside risks to the economy are limited

EUROPEAN OPEN: NOVN SW profit & sales fall on generic competition, may upgrade outlook ahead; BARC LN profits flat as provision offsets growth; BP/ LN profit jumps as oil trading beats expectations; WPP LN Q1 sales beats, affirms outlook amid uncertainty

EUROPEAN MOVERS: Bayer (BAYN GY) -6.4%, Barclays (BARC LN) -3.3%, Novartis (NOVN SW) -2.9%, Air Liquide (AI FP) -2.7%, BP (BP/ LN) +3%, WPP (WPP LN) +4%

On the Newsquawk feed at , 20 minutes before this page.

Use the PlatformFree. No signup, no card.
  • By June, probably no big upward pressure appears in consumer price data. 
  • It is possible to decide before confirming upward price pressure in price data.
  • Communicating closely with government on monetary policy.
  • When asked if a rate hike is not possible while the Strait of Hormuz is closed, the decision would depend on inflation risks and the economy beyond that. 
  • Not thinking there is a high likelihood of the current situation resembling the early 1970s.
  • If the trend inflation overshoots by 2% by a big margin, then strong tightening could be required.
  • In the process of adjusting rates towards neutral, all other conditions being equal.
  • Japan's exposure to private credit is not big; it requires caution, given transparency in the sector is low.
  • Unless significant downside pressure to the economy, a rate hike is possible.
  • Rate hike decision and QT adjustment will be separate. 

Context

BoJ Governor Ueda's comments suggest a nuanced approach towards potential rate hikes, contingent on inflation and economic stability. While he's not indicating immediate pressure to raise rates, the emphasis on a possible hike if inflation risks rise or economic downturns limit further suggests a cautious, data-driven strategy. This stance may impact the JPY and broader fixed income markets, as traders reassess expectations surrounding monetary policy adjustments.

Related headlines

The feed had this first.

Use the Platform