BOJ's Himino: Wide Neutral Rate Range Complicates Monetary Policy Setting

BOJ Deputy Governor Himino acknowledged that Japan's neutral interest rate estimate spans a wide range, making it difficult to guide monetary policy by measuring the gap between the current policy rate and the neutral rate. This adds uncertainty to the BOJ's rate hike trajectory. USD/JPY and JPY crosses are directly affected. Traders watching for BOJ tightening signals will see this as dovish-leaning, as it suggests the BOJ lacks a clear benchmark to justify further rate hikes, potentially capping yen strength.