Morgan Asset Management: It is expected that the Bank of Japan will avoid raising interest rates again in the short term
On August 9, Morgan Asset Management stated that the Bank of Japan will avoid raising interest rates again in the short term, and further tightening of policies may depend on the direction of the U.S. economy. "The Bank of Japan actually has a path to take action again, but it is a path where the Federal Reserve cuts interest rates and manages to stabilize the U.S. economy," pointed out Seamus Mac Gorain, Global Interest Rate Director at Morgan Asset Management. "Of course, if America falls into recession, that road is blocked." Mac Gorain believes that further tightening monetary policy might not happen until 2025. In an interview he said that The Bank of Japan could carry out a series of rate hikes depending on a fairly benign global backdrop. "Obviously, The Bank of Japan won't act before markets settle down," Mac Gorain said. "This certainly also depends on whether or not US and global economies can avoid recession."
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