Analyst: Bank of Japan's Asset Sale Plan Signals Imminent Rate Hike in October

Jinse Finance reported that analysts stated that after the Bank of Japan unexpectedly released a hawkish signal, the yen generally strengthened against G10 currencies and Asian currencies. Matt Simpson, Senior Market Analyst at StoneX, pointed out that although the central bank kept interest rates unchanged as expected, it announced the start of reducing its ultra-large ETF and REIT holdings. "This marks an important symbolic step in officially moving away from the ultra-loose policies of the Abenomics era," he said. "The key point is that the Bank of Japan has officially begun to reduce its unconventional asset holdings." Simpson added that this could also be a precursor to a rate hike by the central bank in October. (Golden Ten Data)