Analyst: Bank of Japan Asset Sale Plan Signals Rate Hike in October

BlockBeats News, September 19th, Analysts stated that after the Bank of Japan unexpectedly released a hawkish signal, the Japanese Yen strengthened against G10 currencies and Asian currencies.

StoneX Senior Market Analyst Matt Simpson pointed out that although the central bank kept rates unchanged as expected, it announced the start of reducing its massive ETF and REIT holdings.

“This marks a symbolic step in officially moving away from the era of Abenomics' ultra-loose policies,” he said. “The key point is that the Bank of Japan has officially begun to reduce the size of its unconventional asset holdings.” Simpson added that this could also be a precursor to a rate hike by the central bank in October. (FXStreet)