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Yen’s Fall Complicates BOJ’s Decision on Timing of Rate Hike
The yen’s rapid fall past 150 against the dollar adds a further complication for the Bank of Japan as it considers the best timing for its first interest rate hike since 2007. Most BOJ watchers expect Governor Kazuo Ueda to raise the policy rate either in March or April. Raising the rate earlier might provide some quicker support for the yen, but economists point out that the central bank will be reluctant to give the impression it is simply responding to market moves. “There’s no doubt the yen has become a more important factor for the end of the negative rate,” said Yuichi Kodama, chief economist at Meiji ... (full story)