Live Updates > Live Update Details
2026-09-21 19:20:10
[Japanese Policymakers Face Increased Difficulty in Guiding Markets, Market Reactions Less Conformist] ⑴ The Bank of Japan raised its benchmark interest rate to a 31-year high last Friday, but the foreign exchange market reacted tepidly, with the yen continuing to weaken. ⑵ The global environment is currently characterized by high interest rates, making markets highly sensitive to inflation and government debt, significantly increasing the difficulty for policymakers to guide the market. ⑶ Previous press conferences by the Federal Reserve Chairman and the US Treasury Secretary's repurchase operations of long-term bonds failed to continuously reverse the trend of US Treasury yields, making the market increasingly critical of policy statements. ⑷ This rate hike in Japan aims to curb inflation and support the yen, which has depreciated by more than 5.5% against the US dollar over the past year, with Japan having intervened in the foreign exchange market earlier this year. ⑸ Market opinions suggest that the Bank of Japan governor's cautious stance, lacking a strong hawkish signal, and the rate hike falling short of traders' expectations, failed to effectively boost the yen.
