Kazuo Ueda appears to have made a new year’s resolution to avoid shocks — and the self-inflicted wounds that come with them.
After blindsiding investors in July, the Bank of Japan governor needed Friday’s interest-rate hike to be boring. By that yardstick, he’s notched a win.
The quarter-point increase, which took the main rate to 0.5%, was probably the most telegraphed this century. The past few weeks have been cluttered with hints, in speeches and leaks, that a tightening was imminent, baring a sudden decision from U.S. President Donald Trump that targeted Japan. Even the government, in a weakened position after a setback at the last election, signed off. The contrast with six months ago, when the bank raised unexpectedly and made hawkish noises, couldn't have been greater.
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