Japanese Yen: BoJ risks skewed to stronger Yen – BBH
Brown Brothers Harriman's (BBH) Elias Haddad reports that the recent USD/JPY decline has stalled despite hawkish comments from Bank of Japan (BoJ) member Kazuyuki Masu, with markets already pricing a 25 bps hike to 1.25% on September 18.
Brown Brothers Harriman's Elias Haddad has noted that despite hawkish comments from Bank of Japan (BoJ) member Kazuyuki Masu, the recent decline in USD/JPY has stalled. Masu expressed his belief that the Bank of Japan needs to raise the policy interest rate further to fall within the estimated range of the neutral interest rate, but so far, markets have priced in a 25 basis points hike for September 18.
A 50 basis points move cannot be ruled out, given that inflation is very close to the 2% target, and the economy is slightly above its capacity. The article highlights the risks in favor of a stronger Japanese Yen due to these factors.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
