Double Whammy of Weak Yen, Rising Yields Piles Pressure on BOJ
- Swap market is almost fully pricing in another hike by March
- Trump’s pursuit of inflationary policies may weaken yen more
The weakening yen and rising bond yields are ramping up pressure on Bank of Japan policymakers to increase interest rates.
The swap market is almost fully pricing in another rate increase by the end of the fiscal year in March, with strong odds for a hike by the BOJ’s January meeting.