The post BoJ prepares markets for near-term hike — Reuters appeared on BitcoinEthereumNews.com. The Bank of Japan (BoJ) is preparing markets for a potential interest rate hike as soon as in December, Reuters reported on Wednesday.  A change in BoJ tone over the past week has shifted focus back to inflationary risks of a weak Japanese Yen from earlier concerns over the US economy, comments aimed at reminding markets a December rate hike was still a prospect. Market reaction The USD/JPY pair is losing 0.10% on the day to trade at 155.95, at the press time. Bank of Japan FAQs The Bank of Japan (BoJ) is the Japanese central bank, which sets monetary policy in the country. Its mandate is to issue banknotes and carry out currency and monetary control to ensure price stability, which means an inflation target of around 2%. The Bank of Japan embarked in an ultra-loose monetary policy in 2013 in order to stimulate the economy and fuel inflation amid a low-inflationary environment. The bank’s policy is based on Quantitative and Qualitative Easing (QQE), or printing notes to buy assets such as government or corporate bonds to provide liquidity. In 2016, the bank doubled down on its strategy and further loosened policy by first introducing negative interest rates and then directly controlling the yield of its 10-year government bonds. In March 2024, the BoJ lifted interest rates, effectively retreating from the ultra-loose monetary policy stance. The Bank’s massive stimulus caused the Yen to depreciate against its main currency peers. This process exacerbated in 2022 and 2023 due to an increasing policy divergence between the Bank of Japan and other main central banks, which opted to increase interest rates sharply to fight decades-high levels of inflation. The BoJ’s policy led to a widening differential with other currencies, dragging down the value of the Yen. This trend partly reversed in 2024, when… The post BoJ prepares markets for near-term hike — Reuters appeared on BitcoinEthereumNews.com. The Bank of Japan (BoJ) is preparing markets for a potential interest rate hike as soon as in December, Reuters reported on Wednesday.  A change in BoJ tone over the past week has shifted focus back to inflationary risks of a weak Japanese Yen from earlier concerns over the US economy, comments aimed at reminding markets a December rate hike was still a prospect. Market reaction The USD/JPY pair is losing 0.10% on the day to trade at 155.95, at the press time. Bank of Japan FAQs The Bank of Japan (BoJ) is the Japanese central bank, which sets monetary policy in the country. Its mandate is to issue banknotes and carry out currency and monetary control to ensure price stability, which means an inflation target of around 2%. The Bank of Japan embarked in an ultra-loose monetary policy in 2013 in order to stimulate the economy and fuel inflation amid a low-inflationary environment. The bank’s policy is based on Quantitative and Qualitative Easing (QQE), or printing notes to buy assets such as government or corporate bonds to provide liquidity. In 2016, the bank doubled down on its strategy and further loosened policy by first introducing negative interest rates and then directly controlling the yield of its 10-year government bonds. In March 2024, the BoJ lifted interest rates, effectively retreating from the ultra-loose monetary policy stance. The Bank’s massive stimulus caused the Yen to depreciate against its main currency peers. This process exacerbated in 2022 and 2023 due to an increasing policy divergence between the Bank of Japan and other main central banks, which opted to increase interest rates sharply to fight decades-high levels of inflation. The BoJ’s policy led to a widening differential with other currencies, dragging down the value of the Yen. This trend partly reversed in 2024, when…