BOJ wins the first joust against Takaichi; Ueda press conference up next

The BOJ's decision to raise rates came as no surprise, leading to a muted market response. Despite interest rates hitting their highest levels since 1995, the Japanese yen actually fell post-announcement. This indicates that the market sentiment leans towards reacting to unexpected events rather than confirmed actions. Governor Ueda has taken a bolder stance by defying Prime Minister Takaichi's call for the BOJ to align with government fiscal ambitions, fueling a confrontation in recent weeks with lawmakers advocating for a more patient approach. With the window for further hikes likely closing, this move by the BOJ can be seen as a necessary step, albeit late. However, expectations for future increases may depend heavily on wage data, which could influence the BOJ's commitment. The market is eagerly awaiting the upcoming press conference by Governor Ueda to assess his stance and whether he will maintain options open for March.