Analyst: Shintaro Ishihara's departure may delay the Central Bank of Japan's interest rate hike, and the yen's weakness may expand.

Jin10 data reported on September 8th, Chris Weston from Pepperstone pointed out that the resignation of Japanese Prime Minister Shizo Abe shifts the focus to his successor and what this might mean for political stability. The market will weigh the extent of additional fiscal measures and budgets under the new leadership. "The degree of fiscal stimulus is crucial for controlling the rise of long-term Japanese government bonds," he stated. These developments may be seen as another reason to delay the Bank of Japan's next rate hike of 25 basis points until 2026. This expectation has already been reflected in the market, with swap traders anticipating only a 12 basis point hike by December, Weston noted this is another reason why very few are willing to hold the yen at present. He expects the yen's weakness in the Asian market to become widespread.
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