BOJ Split Vote Casts Doubt over Pace of Further Rate Hikes

Dow Jones
09/18

0555 GMT - Prime Minister Sanae Takaichi's fundamentally cautious stance toward monetary tightening is likely to remain unchanged despite the Bank of Japan's faster-than-usual pace of interest-rate increases, say analysts at Mitsubishi UFJ Morgan Stanley Securities. BOJ board members Toichiro Asada and Ayano Sato, both appointed by Takaichi, voted against Friday's rate hike. "The government's concerns that interest-rate increases could dampen corporate investment appetite and household spending are likely to stay largely intact," the analysts say. The yen weakened after the announcement, hovering near 157.20 per dollar as the vote split cast doubt on the pace of further policy tightening.

 

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