Central Banks
BOJ Sends Dovish Signal After Rate Hike Spurred Market Meltdown
- Uchida notes importance of keeping policy easy for now
- Sees no risk of BOJ falling behind the curve on rates
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Bank of Japan Deputy Governor Shinichi Uchida sent a strong dovish signal in the wake of historic financial market volatility in Japan by pledging to refrain from hiking interest rates when the markets are unstable.
The yen weakened by more than 2% against the dollar, bond futures spiked higher and stocks rebounded immediately after his comments, which were the first public remarks by a BOJ board member since the bank raised rates on July 31.