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BOJ to raise policy rate; Exit from negative Interest rates Japan's central bank to hike rates for first time in 17 years... -0.1% → 0-0.1% expected The BoJ is raising its benchmark interest rate for the first time in 17 years, Japan's Kyodo news agency reported. The central bank had been holding the benchmark rate at a negative rate (-0.10%), but with Japan also seeing inflation, it's likely to keep the benchmark rate at a positive rate. BOJ to raise policy rate; Exit from negative Interest rates USD/JPY; stockcharts.com Day 18, BOJ; rate hike expected 19-20, U.S. Fed; FOMC meeting ... expected to keep rates unchanged, watch for comments on when to cut rates While the Japanese central bank's rate hike is expected to strengthen the Japanese yen, the U.S. Federal Reserve's delayed rate cut is expected to have less of an impact on the Japanese yen, as the U.S. dollar strengthens. In the meantime, Japan has controlled interest rates below 1% for 10-year government bond

Fed rate cuts to be hard?… Inflation target 2% "Fed needs to be confident of reaching its 2% Inflation target." For the U.S. Federal Reserve to cut interest rates, it first needs to have strong confidence in reaching and maintaining its 2% inflation target. Over the past year, inflation has been falling steadily, but not enough to reach the target, and the economy is showing signs of improvement. The question for the Fed is. If it cuts rates too soon, it will fail to reach its 2% inflation target and potentially cause high inflation to become entrenched. If they cut rates too late, high-interest rates could push the economy into recession. Fed Chairman Jerome Powell's comments echo that concern. “Reducing policy restraint too soon or too much could result in a reversal of progress we have seen in inflation and ultimately require even tighter policy to get inflation back to 2%.”, “At the same time, reducing policy restraint too late or too little could unduly weaken econom