Yen Jump Eases Pressure on BOJ to Tighten Policy, Analysts Say
- Government might have seen low chance of hawkish BOJ: Mizuho
- July rate hike would be seen as driven by FX: Resona Asset
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Thursday’s sharp yen rally on suspected Japanese intervention may reduce pressure on the central bank to tighten monetary policy aggressively at the end of this month, according to several analysts.
If the Bank of Japan raised interest rates in addition to announcing a reduction in bond purchases, its actions risk being seen as driven by the volatile yen and not its mandate to stabilize prices, they said.