ING senior economist for Japan and Korea Min Joo Kang said market reaction to the Bank of Japan's decision was limited because a 25bp hike was widely priced. The appearance of a dissenting vote, though not unexpected, will keep observers cautious on the timing of the next move. Market participants are awaiting remarks from BOJ deputy governor Uchida Shinichi for clearer signals on the tightening path; the yen's near-term direction will depend on how hawkish Uchida sounds. ING sees the yen likely

ING senior economist for Japan and Korea Min Joo Kang said market reaction to the Bank of Japan's decision was limited because a 25bp hike was widely priced. The appearance of a dissenting vote, though not unexpected, will keep observers cautious on the timing of the next move. Market participants are awaiting remarks from BOJ deputy governor Uchida Shinichi for clearer signals on the tightening path; the yen's near-term direction will depend on how hawkish Uchida sounds. ING sees the yen likely to hover around the 160 level unless Uchida signals a near-term follow-up rate increase.