Japan’s Matsuno: Watching the impact of Fed interest rate rise on Japan, world economy

Japanese Chief Cabinet Secretary Hirokazu Matsuno said on Thursday that the authorities watching the impact of the Fed interest rate rise on Japan and the world economy, given its impact on financial markets.

Matsuno said he “hopes that the Bank of Japan (BOJ) guides policy appropriately in close coordination with government” when asked about BOJ’s policy meeting this week.

His comments come ahead of Friday’s BOJ monetary policy decision when the central bank is unlikely to alter its ultra-dovish stance on policy.

Market reaction

USD/JPY is rebounding to near 134.60 amid a risk-on market mood, up 0.55% so far.