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Analysts: Bank of Japan asset sales plan indicates October interest rate hike is imminent

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2025-09-19 05:53:36
Analysts said the yen generally strengthened against G10 currencies and Asian currencies after the Bank of Japan's unexpectedly hawkish signal. Matt Simpson, senior market analyst at StoneX, noted that while the central bank kept interest rates unchanged as expected, it announced the start of tapering its ultra-large ETF and REIT holdings.
"This marks an important symbolic step in formally moving away from the ultra-loose policies of the Abenomics era," he said. "The key point is that the BoJ has officially started to reduce its unconventional asset holdings." Simpson added that this could also be a precursor to the central bank's interest rate hike in October. (Jin Ten)
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