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USD/JPY momentum turns lower as the BOJ hike rates to a 17-year high

The BOJ delivered the full 25bp hike as expected, which takes their interest rate to a 17-year high of 0.5%. Data released a few hours before the BOJ’s hike showed that Japan’s core CPI rose to a 16-year high, and the BOJ cited the fact that many firms have said they will continue to raise rate this year. And it is these growing wage pressures which have forced the BOJ to increase their price forecasts for fiscal year 2025 and 2026.

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