Expectations are growing that the BOJ will raise its policy rate to 1.25% at its next Monetary Policy Meeting. Meanwhile, the yen’s short-term direction is expected to hinge on the FRB’s moves and political votes in Japan.
According to a Citi Research research note, the Bank of Japan is expected to raise its policy rate to 1.25% at its next Monetary Policy Meeting. Markets are closely watching the direction of monetary policy.
The yen’s short-term direction is expected to be influenced by the FRB’s interest rate moves and developments in Japan’s political votes, with these factors seen as key to the yen’s exchange rate.