BofA: If the Bank of Japan fails to give clear guidance on further rate hikes, the yen may weaken

Sina Financial News Bank of America said that if the Bank of Japan fails to give clear guidance on further interest rate hikes after exiting the negative interest rate policy next week, the yen may fall. Adarsh Sinha, the bank's co-head of FX and interest rates strategy for Asia, said that while the news of a rate hike in March may give the yen an initial rally, as long as the Bank of Japan does not give any form of forward guidance, the market may be disappointed and the yen will weaken slightly on the day. Any dovish guidance that leaves room for future rate hikes will be in line with the market's view that another rate hike is likely at the end of this year or early next year.
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