- Higher tariffs will obviously also have impact on Japan’s economy, prices
- We will judge comprehensively said impact via new projections set out in 1 May meeting
- No new plans to immediately sell BOJ’s ETF holdings
- It doesn’t matter whether this year year’s wage talk outcome is better or worse than last year’s
March might be a bit too soon for the next rate hike but their communique in the lead up to the 1 May decision will be the crucial thing to watch. As things stand, traders are only pricing in ~18% odds of a rate hike but the situation can quickly change depending on how the BOJ wants to spin the narrative in the weeks ahead.
This article was written by Justin Low at www.forexlive.com.
