Surge in JPY calls for a policy response – Danske Bank

Senior Analyst, Morten Helt at Danske Bank, suggests that the politics are set to take centre stage in Japan in coming months as the economic and political situation and, not least, this year’s surge in the JPY, in our view, calls for a policy response.

Key Quotes

“We expect the Bank of Japan to cut its policy rate by 20bp to -0.3% in July and to announce additional qualitative measures including a scale up of ETF purchases and a maturity extension of its government purchases.”