Commerzbank Sees BOJ Rate Pressure Supporting Cautious Yen Strength
Commerzbank’s Volkmar Baur says solid nominal growth and higher-than-expected inflation should keep pressure on the Bank of Japan to raise rates again, possibly as early as September.
JPY
Commerzbank strategist Volkmar Baur views Japan’s solid nominal growth and above-consensus inflation as factors that should keep pressure on the Bank of Japan to tighten policy again. In his note, that supports a cautiously constructive tone for the Japanese yen.
Baur argues the BoJ could deliver another rate increase as soon as September, given the strength of nominal growth and inflation. The view is framed as gradual support for the yen rather than a sharp rally call, with the BoJ rate path remaining the key driver.
Source: FXStreet Forex News