BOJ's Ueda Says Need to Maintain Accommodative Monetary Environment to Support Economy
The slightly dovish take may assuage concerns about a yen-led risk-off in global markets, including cryptocurrencies.
What to know:
- BOJ's Ueda stresses the need to support the economy with an accommodative monetary environment.
- The slightly dovish take may soothe the market's nerves about Yen-led risk-off.
Bank of Japan (BOJ) Governor Kazuo Ueda said Friday the central bank must maintain an accommodative monetary policy to support economic growth and ensure the underlying inflation gradually moves to the 2% target.
Ueda told the Parliament that the recent increase in the consumer price index above the 2% target has been led by cost-push factors such as elevated food and fuel prices that will likely dissipate.
The comments come a week after the bank raised the benchmark borrowing cost to 0.5%, the highest in over 16 years, and could assuage fears of a yen-led risk-off in global markets, including cryptocurrencies, as observed in August.
The governor, however, maintained that rate hikes will continue if the economy evolves as expected. According to ForexLive, traders see the next BOJ rate hike in July.
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Bitcoin Jumps to $99K as Spiking Coinbase Premium Points to Strong U.S. Buying
Spot BTC prices were at times $300 pricier on Coinbase relative to Binance, suggesting the rally may be driven by heavy demand from American investors.
What to know:
- Bitcoin surged towards $100,000 on Wednesday's U.S. trading session, gaining 3.2% in the past 24 hours.
- The rally coincided with significant spot BTC price premium on Coinbase.
- Fed Chair Jerome Powell called bitcoin a competitor to gold during a panel discussion.
