BOJ Seen Sticking to Ultra-Low Rates, Defy Global Rate Hike Rush
TOKYO—The Bank of Japan is set to maintain ultra-low interest rates and its dovish policy guidance on Thursday, a decision that comes hours after its U.S. counterpart’s expected big rate hike and could trigger a fresh bout of yen selling.
The policy gap between the Bank of Japan (BOJ) and the U.S. Federal Reserve has pushed the yen to 24-year lows, driving up import costs and helping inflation stay above the BOJ’s 2 percent target for five straight months in August.
Markets are focusing on whether BOJ Governor Haruhiko Kuroda will offer stronger warnings on the yen’s sharp falls or tweak his view the recent cost-push inflation will be short-lived….