According to Odaily, Morgan Asset Management has indicated that the Bank of Japan is expected to refrain from raising interest rates in the near term. The decision to further tighten monetary policy will likely depend on the trajectory of the U.S. economy. Seamus Mac Gorain, the company's Global Head of Rates, stated that while the Bank of Japan has a potential path to take action again, it is contingent on the Federal Reserve cutting rates and stabilizing the U.S. economy. He added that if the U.S. were to enter a recession, this path would be obstructed. Morgan Asset Management is betting that the yield spread between Japan's short-term and long-term government bonds will narrow.