According to Jinshi Data, Morgan Asset Management said that the Bank of Japan will avoid raising interest rates again in the short term, and further tightening of policy may depend on the direction of the US economy.
The firm's global head of rates, Seamus Mac Gorain, noted that the Bank of Japan actually has a path to act again, but that is a path where the Federal Reserve cuts rates and tries to stabilize the U.S. economy.
He also said that if the United States falls into recession, this path is blocked. Morgan Asset Management is betting that the gap between short-term and long-term Japanese government bond yields will narrow.
