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The full text of the Bank of Japan's monetary policy decision has been released: interest rate hikes suspended, with rates maintained at 0.25%.
The Bank of japan voted unanimously to pass the interest rate resolution, keeping the interest rate unchanged at 0.25%, citing mild increase in inflation expectations.
Emerging market investors uneasy? Fed rate cuts could cause yen appreciation.
The Fed's possible interest rate cut this week may lead to a strengthening of the Japanese yen, which could unsettle emerging market investors and bring back memories of the global turmoil in August.
The yen trend has reversed, and Japanese stock investors are daring to go without hedging.
Since the Bank of Japan raised interest rates in July, there has been a more widespread change in people's views on the yen. This is a double-edged sword for the stock market.
After the release of the two big data, the Bank of Japan's expectations of interest rate hikes have increased.
After the release of Japan's labor cash income data and the US non-farm data, the Japan 225 index CME futures once again fell by more than 5%.
Whales are changing direction! The world's largest retirement fund may increase its holdings of Japanese stocks, triggering a chain reaction.
One of the world's largest retirement funds, the Government Pension Investment Fund (GPIF) of Japan, may increase its buying of domestic stocks and reduce investments in foreign bonds. This trend could have an impact on the global market. As long as GPIF raises its allocation target for Japanese stocks by 5 percentage points, it could translate into a net purchase of over 10 trillion yen (approximately 69 billion US dollars).
The Governor of the Bank of Japan reiterated that the economic environment remains accommodative and if the data meets expectations, interest rates will continue to be raised.
Kazuo Ueda stated that due to the significantly negative real interest rates, the economic environment will remain loose even after the interest rate hike in July.