After a pause, the Japanese yen, paired with the US dollar, resumed its decline. The current USDJPY exchange rate stands at 148.54.
A high-ranking official from the Bank of Japan remarked yesterday that it was challenging to envision a scenario in which the regulator would swiftly raise the interest rate.
This official was Shinichi Uchida, deputy manager of the Central Bank. Even if the CB terminates its negative interest rate policy, he says, it will be challenging to outline a path for quickly raising borrowing costs. Once the BoJ scraps its negative interest rate policy, financial conditions in the Japanese economy will remain relatively favourable. Any steps towards tightening will be executed cautiously and gradually.
The yen declined in response to these comments.
The end of the era of negative interest rates seems to be approaching, as monetary policymakers discuss further strategies. However, it is still unclear when this ultra-soft monetary policy will be abandoned.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.