Bank of Japan Statement and Governor Ueda Speech Due Friday

The Bank of Japan will release its policy statement and Governor Kazuo Ueda will speak on Friday. The timing of the release is uncertain, but it is expected to be between 0230 and 0330 GMT (22030 to 2330 US Eastern time on Thursday). Governor Ueda will speak shortly after, at 0630 GMT (0230 US Eastern time). The market is closely watching the statement and speech for any indication of a change in the BoJ’s ultra-loose monetary policy. In September 2022, the BoJ intervened to prop up the yen after former Governor Haruhiko Kuroda’s comments stressed the bank’s resolve to maintain the policy. Governor Ueda is likely to be cautious in his remarks to avoid causing market volatility. The BoJ is also expected to leave interest rates unchanged and maintain its guidance to keep buying government bonds at a pace of around 6 trillion yen per month.

ECB’s Isabel Schnabel Addresses Challenges for Monetary Policy Transmission

European Central Bank (ECB) board member Isabel Schnabel delivered a speech at the inaugural conference of an ECB research network dedicated to the topic of monetary policy transmission in a changing world. Schnabel’s remarks focused on the current challenges facing central bankers in terms of effectively implementing monetary policy. She emphasized the need for central banks to adapt to the evolving economic and financial landscape, including the rise of digitalization and the increasing interconnectedness of global markets.

Yen Stumbles Below 155 Per Dollar as BOJ Rate-Setting Meeting Commences

The yen has weakened below the 155-per-dollar mark as the Bank of Japan (BOJ) embarks on its two-day rate-setting meeting. The currency has been under pressure, with the US dollar breaking above the key psychological threshold for the first time since 1990. Speculation has been rife that Japanese authorities may intervene to support the yen, but no such action has been taken yet. The BOJ is expected to maintain its ultra-loose monetary policy stance, making significant appreciation of the yen unlikely, despite its historically low levels.

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