BoJ 25bp Hike to 1.00% Fails to Boost Yen, Says ING

According to ING's Chris Turner, the Bank of Japan's recent 25 basis point rate hike to 1.00% has not provided a meaningful lift to the Japanese yen. The analyst argues that monetary policy remains accommodative when adjusted for inflation, and real interest rates are still deeply negative.

ING suggests that the yen's weakness is likely to persist as the rate differential with other major central banks remains large. The hike is seen as a cautious step rather than a game-changer for the currency.

Key takeaway: Real rates in Japan remain comfortably negative despite the increase, limiting the yen's upside potential in the near term.