Will scrutinise how FX moves affect economy, price forecasts at each policy meetingThere are numerous factors we want to check, including the US economyBut won’t necessarily wait until there is clarity for all of themWill check them at each policy meeting in deciding policyIf we don’t adjust degree of monetary support appropriately, could be forced into rapid rate hikes
He’s sort of leaving the door open for a potential move in December. And as things stand, market players are also rather torn. The OIS market is currently pricing in a ~53% probability of a 25 bps rate hike next month. The remainder is tied to the BOJ leaving its policy rate unchanged instead.
This article was written by Justin Low at www.forexlive.com.
