Morgan Asset Management: It is expected that the Bank of Japan will avoid raising interest rates again in the short term.
According to Odaily, Morgan Asset Management stated that the Bank of Japan will likely avoid further rate hikes in the near term, and further tightening of policy may depend on the direction of the US economy. "The Bank of Japan actually has a path to act again, but that is a path where the Federal Reserve cuts rates and manages to stabilize the US economy," said Seamus Mac Gorain, the company's global head of rates. "Of course, if the US falls into a recession, that path is blocked." Mac Gorain believes that further tightening of monetary policy may not happen until 2025. He said in an interview that the Bank of Japan may carry out a series of rate hikes, but that would depend on a fairly benign global backdrop. "It's clear that the Bank of Japan won't take action until the markets stabilize," Mac Gorain said. "This will also depend on whether the US and global economy can avoid a recession."
