BOJ May Take Lead Via Rate Increases as Primary Tool for Stabilizing Yen
Dow Jones
Yesterday
0219 GMT - The Bank of Japan may take the lead via rate increases as the primary tool for stabilizing the yen, three members of BofA Global Research say in research report. "To make the effects of FX intervention durable and achieve lasting yen stability, Japan ultimately needs a shift in its policy mix," the members say. "For now, the most plausible policy mix remains monetary tightening amid fiscal expansion," the members say. The BOJ is likely to raise rates at quarterly pace before ending rate-hike cycle at terminal rate of 2% in July 2027," they add. BofA's end-2026 forecast of dollar at 149 yen remains unchanged. The dollar is 0.1% higher at 159.27 yen.
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