Analysis: Bank of Japan's statement paves the way for the earliest interest rate hike in the fourth quarter, and the strengthening of the yen leads the US/Japan toward the 147 mark

According to ChainCatcher, according to Glomenghui, institutional analysis pointed out that the Bank of Japan maintained the policy interest rate of 0.50% with a 7-2 vote, which is in line with general market expectations. Deliberation members Takata Takata and Naoki Tamura voted against maintaining interest rates (proposing a 25 basis point rate hike). The policy statement is more detailed than before, reiterating the judgment that the economy "although some areas show weakness, it has a moderate recovery overall", and stressing that it will pay close attention to the impact of uncertainty on the financial foreign exchange market, Japanese economic activities and prices. The bank specifically pointed out that the outlook faces "multiple risks", saying that "there is a high degree of uncertainty in the evolution paths of trade and other policies in various jurisdictions, overseas economic activities and prices' response to this." Although Japan and the United States have signed a trade agreement, the statement still emphasizes high uncertainty and clearly states that the tariff environment is more unfavorable to Japanese companies than the zero-tax era before Trump took office. The dollar continued to decline against the yen, setting a low of 147.28 after the resolution was refreshed, while Tokyo generally maintained a level around 148.00 in the early trading session. The yen leads the G10 currency today, with the market interpretation of the Bank of Japan's statement paving the way for the earliest interest rate hike in the fourth quarter.