Highlights
• BoJ delivers a rate hike and signals more to come
• Term premium trumps inflation in Treasury yield run-up
• Ranks of the unemployed unable to land a job continue to swell
• Trump tariffs would deliver a deflationary shock to the Canadian economy
Key Takeaways
BoJ Hikes, Yen Strengthens
• The big news overnight was the +25-basis point rate hike by the BoJ to 0.5%, the highest level since 2008. Forward guidance hinted strongly at more such moves to come (while not committing to a time schedule). The economic outlook received an upgrade as well. The yen is finding its legs in a belated fashion — strengthening +0.8% to ¥154.85.
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