If we enjoy a bank holiday tomorrow morning, Japanese Bank will organize its May monetary policy meeting. Having raised its main interest rate from 0.25% to 0.5% in January, Japanese Bank decided to stop in March. I hope it will leave the main interest rate unchanged tomorrow, says Volkmar Baur, a Commerzbank FX analyst.
Boj saw the uncertainty of tariff tariffs
“Although the Japanese bank has repeatedly announced in recent weeks that it intends to raise interest rates further as the economy is evoking as expected, this expectation is at least questioned at least at least” Liberation Day “in the US four weeks ago.
“It is quite possible that the Japanese bank will consider its prospects for a variety of scenarios, as the Canadian Bank recently did. After all, it is still unclear how high is Japanese import US tariff tariff rate when the 90-day grace period expires within 60 days. The same applies to other Asian economics tariffs.
“Especially since there is no reason to rush. Inflation has recently increased slightly. But looking at the inflation of salaries and service, there is still no evidence of a structural inflationary problem. The market agrees, currently only assessing the very low probability that the main interest rate hike is. Therefore, the USD/JPY will continue as it is stronger.
