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BOJ could deliver back-to-back 25 bps hikes, Rabobank warns

A second 25 basis point move could mark the first consecutive tightening in decades, with Rabobank noting the current Yen could be pressured via carry trade dynamics.

Reported · Written up by our desk · Central Banks

Rabobank’s RaboResearch Global Economics & Markets team flagged a risk of historic tightening by the Bank of Japan, arguing that another 25 basis point hike is a plausible next step.

According to the report, such a move would be the first back-to-back BOJ rate increase in decades, after an initial hike left the Japanese yen vulnerable.

Rabobank also said a second increase could pressure the yen carry trade, noting that the yen could react to expectations of further tightening.

FXStreet also noted that AUD/USD was holding near 0.7000 at the start of the week, while the Japanese yen outlook remains influenced by safe-haven dollar support tied to US yield strength and broader risk factors.

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