Toru Umemoto
Toru Umemoto
bad bank environment fed interest japan likely months raise rates six
We're still in an environment where the Fed is likely to raise interest rates and the Bank of Japan won't for six months at the earliest. The interest-rate differential is likely to widen and that will be bad for the yen.
central concern early harms independence policy raised reduced remarks shift
Politicians' remarks opposing a policy shift have reduced expectations of an early end to the deflation-fighting policy and raised concern over the independence of the central bank. It also harms the government's credibility; It's yen negative.