USD/JPY has dropped as the market adjusts to the prospect of a new era for the Bank of Japan (BoJ). Economists at Rabobank analyze the pair’s outlook.
BoJ to retain a cautious pace on policy normalisation, curtailing upside potential for the Yen
Bets that the BoJ may pull the plug on its negative interest rate policy on March 19 have surged. Hopes that the Japanese industry may also have turned a corner and finally shrugged off the trauma and behaviours which followed the bursting of the economic bubble more than 30 years ago have also risen.
BoJ policymakers have indicated that they are prepared to exit the negative rate policy this spring. But BoJ policy moves this year are likely to be modest in total and this will likely cap upside potential for the JPY
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.