BoJ: Hawkish hike supports Yen outlook – BNY

BNY’s Bob Savage notes that the Bank of Japan delivered a hawkish 25bp rate hike to 1.0% and will continue scaling back its JGB purchase program. The BoJ signaled confidence in underlying inflation despite slowing headline CPI. Markets remain focused on central bank policy, with investor risk appetite also supported by easing Middle East tensions and AI-related enthusiasm.

BoJ tightening and JGB tapering stance

"Markets remain focused on central bank policy."

"The BoJ delivered a hawkish 25bp hike to 1.0% and will continue to scale back its JGB purchase program, while the RBA kept rates unchanged at 4.35% but maintained a tightening bias."

"BoJ remains hawkish: Japan’s central bank has raised rates to 1.0% and reaffirmed plans to gradually reduce its JGB purchases, signaling confidence in underlying inflation despite a slowing headline CPI."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Jun 16, 2026

US Dollar: Limited downside as Fed caution persists – OCBC

OCBC’s Sim Moh Siong argues that recent risk-on moves following the US‑Iran understanding have only produced a modest pullback in US yields and the Dollar. He highlights AI-driven US growth, Fed event risk and Oil dynamics as supporting USD resilience.

British Pound recovers as Japanese Yen struggles to capitalize on Bank of Japan's hawkish rate hike

GBP/JPY rebounds after a short-lived pullback on Wednesday as traders digest the Bank of Japan's decision to raise interest rates. At the time of writing, the cross is trading around 215.10, recovering from an intraday low of 214.53.