ForexLive Asia-Pacific FX news wrap: Bank of Japan leaves rates unchanged, yen slumps
Forexlive - Dec 18th, 2024
The Bank of Japan (BoJ) decided to keep its interest rates unchanged at 0.25% with an 8-1 vote, as expected. The dissenting member, Naoki Tamura, suggested increasing rates due to rising inflation risks. This decision comes after rate hikes in March and July, with speculation about future rate increases. The USD/JPY surged above 155.20 following the announcement. Meanwhile, New Zealand's Q3 GDP showed a significant contraction of 1% quarter-on-quarter, leading to increased expectations of a 50 basis point rate cut by the Reserve Bank of New Zealand in February, with further cuts anticipated. In other global financial news, the Hong Kong Monetary Authority reduced its base rate by 25 basis points, and the PBOC set the USD/CNY reference rate lower than expected. Australian inflation expectations increased, while New Zealand's business confidence slightly declined. U.S. stocks dropped after the Federal Reserve adjusted its rate cut expectations for 2025.
RATING
The article provides a mixed overview of various economic updates and forecasts from different central banks, with a particular focus on the Bank of Japan and New Zealand's economic indicators. It lacks clear sourcing and appears somewhat disjointed, affecting its overall coherence and reliability.
RATING DETAILS
The article contains factual information and figures regarding central bank decisions and economic indicators. However, the lack of specific source citations for the data and forecasts reduces the ability to verify the accuracy of the claims.
The article mentions different economic perspectives and forecasts, particularly for New Zealand and Japan, but does not delve into opposing views or provide a comprehensive analysis of the potential impacts, which limits its balance.
The article is somewhat disjointed, jumping between different topics without clear transitions. The language is generally neutral, but the structure could be improved for better flow and understanding.
There is a notable lack of attribution to credible sources for the information provided. The article includes some speculative statements and forecasts without indicating their origins or the expertise of those making the predictions.
The article does not disclose any potential conflicts of interest or affiliations, nor does it provide sufficient context for the forecasts and statements made. This lack of transparency affects the reader's ability to fully trust the information.