Finance
Morning Bid: BOJ holds, with a hawkish twist
Published by Global Banking & Finance Review®
Posted on September 19, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on September 19, 2025
2 min readLast updated: January 21, 2026
The BOJ held rates, causing mixed market reactions. Future focus is on rate outlook and ETF sales. Global markets remain influenced by Wall Street trends.
A look at the day ahead in European and global markets from Ankur Banerjee
An expected hold from the Bank of Japan rounded out the central bank bonanza this week that has left stocks ripping higher and the currency market subdued, with the dollar staying soft as investors remain uneasy about the global rates outlook.
The BOJ's decision, though, was not unanimous with two dissents suggesting policymakers are at odds over when to hike next.
Focus will now be on BOJ Governor Kazuo Ueda's press conference where markets will look for clues on the rate outlook and more details on the central bank's plans to sell its holdings of ETFs and real-estate investment trusts (REIT).
The yen firmed immediately after the decision although nothing to get out of bed for, while the Nikkei slipped after touching another record high earlier in the session.
Elsewhere, Asian markets tracked Wall Street higher after the Federal Reserve cut rates as expected earlier this week, although comments from Chair Jerome Powell were measured and did not hint at a rapid lowering of borrowing costs.
Just don't tell the stock market that. Taiwan's benchmark index hit another record high on Friday after Wall Street's main indexes scaled record peaks. European futures indicate a subdued open after a strong session on Thursday.
The Bank for International Settlements, which acts as an umbrella group for the world's central banks, warned this week that record global share prices appear increasingly disconnected from the rising concerns about government debt levels in bond markets.
The dollar has been steady although investors expect the greenback to be weaker in the near term. Bear in mind, the U.S. currency is down more than 10% this year so how much further it falls from here might be limited.
With little economic data on tap during European hours, the spotlight will remain on interest rates and some whipsawed reaction to the BOJ decision through the session.
European tech stocks will also be in focus after Nvidia said it would pour $5 billion into Intel, throwing its weight behind the struggling U.S. chipmaker.
Key developments that could influence markets on Friday:
Economic events: UK retail sales for August, Germany August producer prices
(By Ankur Banerjee; Editing by Muralikumar Anantharaman)
Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates to achieve macroeconomic goals such as controlling inflation and stabilizing currency.
Foreign exchange, or forex, is the global market for trading national currencies against one another. It is the largest financial market in the world, influencing global trade and investment.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage. They are influenced by central bank policies and economic conditions.
Financial markets are platforms where buyers and sellers engage in the trade of assets such as stocks, bonds, currencies, and derivatives, facilitating capital flow and investment.
Economic growth is the increase in the production of goods and services in an economy over a period, typically measured by the rise in Gross Domestic Product (GDP).
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