Bank of Japan verbally supports low rates, leading to market reactions

From Investing.com: 2024-08-07 07:15:00

There were calls earlier this week for an emergency rate cut from the Fed, which seems to be misunderstood as a stock market issue rather than a financial stability concern. Japan’s Bank of Japan offered a verbal put to maintain low rates, leading to market reactions. Equities are mostly higher with European markets up over 1%. Australia’s hawkish hold by the RBA had limited impact. China reported a smaller than expected trade surplus, leading to a fall in the dollar and bond market rally. The US reports June consumer credit growth has slowed. The euro remains in a range above $1.09, while sterling is at risk of breaking below its 200-day moving average. The threat of an Iranian strike on Israel looms in the Middle East. Market observers have pushed back against the idea of an emergency rate cut, citing no significant threat to financial stability.



Read more at Investing.com: BOJ Offers Verbal Support, Extends the Yen’s Pullback