According to economists at TD Securities, the Bank of Japan (BOJ) is getting closer to triggering the rise, as they predict that the pair USD/JPY reach 135 by early 2024.
The BoJ, increasingly closer to the trigger of raising interest rates
The BOJ is getting closer to pulling the trigger to end its negative interest rate policy (NIRP). We believe the BOJ’s 2% inflation target is clearly in sight, given the latest inflation data and the risks (as well as other developments) on the horizon. We expect the BOJ to end its Yield Curve Control (YCC) policy at the December 23 meeting and exit the NIRP on January 24 with a 10 basis point hike in the breakeven rate.
Our accelerated timetable for Bank of Japan normalization reinforces our forecast for a non-consensus USD/JPY, which sees a push towards 135 in early 2024.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
