BOJ to preserve all the YCC settings Unchanged – BofA

Amid the recent developments in the Yen currency, Bank of America (BofA) analysts are keen to provide their expectations while heading towards the Bank of Japan (BoJ) policy decision.

April 28, 2022 - 12:22 PM 279 views

BOJ to preserve all the YCC settings Unchanged – BofA

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© BOJ to preserve all the YCC settings Unchanged – BofA

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Amid the recent developments in the Yen currency, Bank of America (BofA) analysts are keen to provide their expectations while heading towards the Bank of Japan (BoJ) policy decision.

Important Points:

Bank of America (BofA) analysts are expecting the Bank of Japan (BoJ) to hold all the YCC settings, including the +/-25bp band around the 10 year target, which will be unchanged at 28 April MPM.

A dovish BOJ might push the JPY down below 130 yen. But, from the macroperspective point, the BOfA analysts think, "probably the hike in fuel costs and the hawkish Fed are the main reasons for the highly priced USD/JPY currency pairs. But, in the future, the risks may be balanced.

They probably think it will take some time to reduce the pressure on the yen currency. Since March, Japanese companies are speeding up things; they have started M&A activity and there is hope of a new university fund which is likely to invest in foreign market. Therefore, the dip in the USD/JPY currency pair can be recovered by Japanese companies and investors.

 

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