Ahead of today’s decision, markets fully price in another rate hike by September (assuming another 10 basis point hike).
BoJ implied rate expectations
The BoJ remains the only central bank who is expected to raise rates this year.
Year end implied basis point change
The reason why this hasn’t really provided any support for the JPY is because another 10 or even 20 won’t make the carry less attractive (also part of the reason why yield differentials hasn’t been as big of a driver that many expected it to be).
