- Analytics
- News and Tools
- Market News
- BoJ: Exit from ultra-loose monetary policy is positive for the Yen in the short term – Commerzbank
BoJ: Exit from ultra-loose monetary policy is positive for the Yen in the short term – Commerzbank
Preparations for an imminent Japanese interest rate turnaround by officials continued apace. Michael Pfister, FX Analyst at Commerzbank, analyzes the implications for the Japanese Yen (JPY) of ending negative interest rate policy.
The signs of a BoJ interest rate turnaround continue
With each new statement, it becomes clearer that the BoJ wants to end its negative interest rate policy in the near future, even though the second-round effects in Japan are not yet really visible. In the short term, such an exit is certainly positive for the Yen.
It is certainly possible that this is yet another failed communication attempt by the BoJ. If this is true, and the BoJ dares to make more than a symbolic exit from its negative interest rate policy in the coming months, it would be another major disappointment for market hopes, as we have seen several times in the past two years. Such a disappointment would certainly be clearly negative for the JPY.
However, the likelihood of this happening is likely to diminish with each subsequent statement. Therefore, the exit from ultra-loose monetary policy now seems to be rapidly approaching. In the longer term, such an exit could pose some risks for the Yen. In the short term, however, I would not bet against the Yen in the coming months as I did a few months ago.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
