Japanese Yen: BoJ normalization expectations and contained moves – BNY
Wee Khoon Chong at BNY reports strong Japanese macro data and resilient housing and commerce indicators, supporting the narrative that Japan has exited deflation and Bank of Japan (BoJ) normalization remains in play.
The Bank of Japan (BoJ) is expected to normalize monetary policy despite Japan's strong macro data and resilient housing and commerce indicators, according to Wee Khoon Chong at BNY. US Treasury Secretary Scott Bessent has noted that recent Japanese Yen (JPY) movements have been "pretty well-contained" and not disorderly, reducing the likelihood of immediate joint intervention between the US and Japan.
Bessent believes BoJ Governor Kazuo Ueda will make the correct policy decision, and suggests Japan has already overcome deflation and is transitioning to "Takaichi-nomics." Markets are currently anticipating a possible rate hike at the BoJ's September 17-18 meeting.
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