I posted earlier this week on Ftich analysts on the FOMC:
Fitch says the coming Federal Reserve easing cycle will be mild and slow
Fitch now on the Bank of Japan:
BOJ “is bucking the global trend of policy easing and hiked rates more aggressively than we had anticipated in July. This reflects its growing conviction that reflation is now firmly entrenched.”
core inflation above the BOJ’s target for 23 straight monthsfrims prepared to grant “ongoing” and “sizable” wage risessituation quite different from the 1990s “lost decade” when wages failed to grow amid persistent deflationBOJ’s goal of a “virtuous wage-price cycle”BOJ’s confidence that it can continue to raise rates towards neutral settings
Fitch forecasts are for:
0.5% by the end of 20240.75% in 20251% by end-2026
And conclude:
“A more hawkish BOJ could continue to have global ramifications.”
USD/JPY update:
This article was written by Eamonn Sheridan at www.forexlive.com.
