The Bank of Japan is reluctant to raise interest rates | 26 Septiembre 2023

26 Septiembre 2023, USD/JPY

USDJPY trading plan:

The Bank of Japan may hold off on ending negative interest rates until around April next year to gauge whether wage gains will broaden enough to keep inflation sustainably at its 2% target. With inflation exceeding 2% for more than a year, markets are rife with speculation the BOJ will raise short-term interest rates from the current -0.1% as early as the end of this year. Ending negative interest rates likely won't hurt the economy much as inflation-adjusted real borrowing costs will remain low, said Sakurai, a former BOJ board member who retains close ties with incumbent policymakers. The BOJ remains an outlier in maintaining its easy policy stance with much of the global economy facing aggressive interest rate increases over the past 18 months or so to tame inflation.

Investment idea: buy 148.50 and take profit 149.00.

David Johnson
Analyst of «FreshForex» company
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