The USD/JPY pair rises after the Bank of Japan made a slight adjustment to its yield curve control (YCC) policy. ING economists analyze the pair’s prospects.
BoJ in no rush to abandon YCC
The Bank of Japan gives the impression that it does not want government bond yields to rise, and that is why it is acting so cautiously. At the same time, the change in inflation forecasts was not enough to support the idea of an exit from the YCC policy. The CPI excluding food prices – which is the BoJ’s target – remains forecast at 1.7% in fiscal year 2025, that is, not above 2% on a stable basis.
Today’s Bank of Japan meeting has not caused us to readjust our view on the Yen, and now the risk is that USD/JPY advances to 152.00 and prompts the central bank to intervene aggressively in the currency market.
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.
