BNP Paribas: Japanese Yen Weakens Despite BoJ Tightening, GDP Growth to Slow
BNP Paribas strategists say Japan's GDP growth will decelerate from 1.1% in 2025 to 0.8% in 2026 as inflation and energy costs weigh, while the yen weakens against the dollar.
USDJPY
Strategists at BNP Paribas expect Japan's economic expansion to slow to 0.8% in 2026 from 1.1% this year. Higher inflation and energy-related expenses are the main drags, they say, though fiscal stimulus and artificial intelligence investment provide some support.
The note comes even as the Bank of Japan tightens policy, yet the yen continues to depreciate against the US dollar.
Source: FXStreet Forex News