JPY: Patient BOJ outlook amid easing inflation – BBH

FXStreet Insights Team FXStreet

Brown Brothers Harriman (BBH) analysts note that the Bank of Japan can afford to be patient before raising rates, as inflation pressures are easing. Analysts suggest a potential decline in USD/JPY towards 140.00 by year-end, supported by US-Japan rate differentials.

BOJ maintains patient stance on rates

"The Tokyo January CPI print points to easing inflation pressures nationwide. Headline fell 0.2pts more than expected to 1.5% y/y (lowest since March 2022) vs. 2.0% in December."

"The Bank of Japan can afford to be patient before resume raising rates."

"We see room for USD/JPY to edge down towards 140.00 by year-end, the level implied by US-Japan rate differentials."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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