Bank of Japan in talks over interest rates and wage growth
<img width="250" height="151" src="https://www.leaprate.com/wp-content/uploads/2022/12/Japanese-Yen-2-250×151.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="" decoding="async" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2022/12/Japanese-Yen-2-250×151.jpg 250w, https://www.leaprate.com/wp-content/uploads/2022/12/Japanese-Yen-2-700×422.jpg 700w, https://www.leaprate.com/wp-content/uploads/2022/12/Japanese-Yen-2-768×463.jpg 768w, https://www.leaprate.com/wp-content/uploads/2022/12/Japanese-Yen-2-120×72.jpg 120w, https://www.leaprate.com/wp-content/uploads/2022/12/Japanese-Yen-2-245×148.jpg 245w, https://www.leaprate.com/wp-content/uploads/2022/12/Japanese-Yen-2-500×301.jpg 500w, https://www.leaprate.com/wp-content/uploads/2022/12/Japanese-Yen-2.jpg 880w" sizes="(max-width: 250px) 100vw, 250px" /><div><img aria-describedby="caption-attachment-450955" decoding="async" class="wp-image-450955" src="https://www.leaprate.com/wp-content/uploads/2023/10/FIN-LP-Bank-of-Japan-in-talks-over-interest-rates-and-wage-growth-5424348798.png" alt="" width="98" height="98" srcset="https://www.leaprate.com/wp-content/uploads/2023/10/FIN-LP-Bank-of-Japan-in-talks-over-interest-rates-and-wage-growth-5424348798.png 449w, https://www.leaprate.com/wp-content/uploads/2023/10/FIN-LP-Bank-of-Japan-in-talks-over-interest-rates-and-wage-growth-5424348798-250×251.png 250w, https://www.leaprate.com/wp-content/uploads/2023/10/FIN-LP-Bank-of-Japan-in-talks-over-interest-rates-and-wage-growth-5424348798-150×150.png 150w, https://www.leaprate.com/wp-content/uploads/2023/10/FIN-LP-Bank-of-Japan-in-talks-over-interest-rates-and-wage-growth-5424348798-120×120.png 120w, https://www.leaprate.com/wp-content/uploads/2023/10/FIN-LP-Bank-of-Japan-in-talks-over-interest-rates-and-wage-growth-5424348798-245×246.png 245w" sizes="(max-width: 98px) 100vw, 98px" /><p>Jim Leaviss Source: LinkedIn</p></div>
<p>Jim Leaviss, Chief Investment Officer for Public Fixed Income at M&G, noted:</p>
<blockquote><p>It feels like the market is anticipating a modification to yield curve control and is starting to price that already.</p></blockquote>
<p>However, industry experts at Barclays anticipate that the BoJ may scrap yield curve control entirely this week after a damaging start to the week acting as the nail in the coffin of a tough financial year.</p>
<p>Morgan Stanley analysts suggest that the BoJ has actively moved against rising interest rates over the past two years by keeping its policy rate at minus 0.1% despite experiencing 18 months of inflation exceeding its target.</p>
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<p>That being said, the widening gap between borrowing costs in Japan has put pressure on the BoJ to tighten its policy as the yen weakens. The BoJ has argued that the primary factor driving up prices has been the rapidly soaring import tariffs that have impacted countries worldwide since the Covid-19 pandemic and Brexit.</p>
<p>It seems that the <a href="https://www.leaprate.com/forex/market-news/daily-market-commentary-the-japanese-yen-crosses-the-145-level-in-relation-to-the-dollar-the-bank-of-japan-intervenes/" target="_blank" rel="noopener">BoJ</a> may maintain an active standpoint on a further interest hike, opting for more sustainable wage growth to prevent the economy from regressing into decades of deflation – experts await reports from the bank’s two-day meeting to determine the next plan of action regarding the yen.</p>
<p>The post <a rel="nofollow" href="https://www.leaprate.com/news/bank-of-japan-in-talks-over-interest-rates-and-wage-growth/">Bank of Japan in talks over interest rates and wage growth</a> appeared first on <a rel="nofollow" href="https://www.leaprate.com">LeapRate</a>.</p>
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