Market Analysis: The Bank of Japan is expected to keep interest rates unchanged, focusing on the yen's weakness

Golden Finance reports that on April 23, MFS Investment Management analyst Carl Ang stated that he expects the Bank of Japan to keep interest rates unchanged at 0.75% at next week’s meeting, while expressing a hawkish stance. “Given that the Bank of Japan has a dual mission of maintaining price stability and financial stability, and that a weakening yen often leads to rising consumer prices, we anticipate that the bank will focus on the issue of yen weakness at that time,” Ang said. The analyst also added that although the USD/JPY exchange rate is currently holding below the 160 yen resistance level relatively well, during the “Golden Week” holiday immediately following the Bank of Japan meeting, market liquidity typically decreases. Low liquidity environments may provide opportunities for the government to intervene in the currency market, potentially triggering a reflexive rapid appreciation of the yen within the 150 to 160 range. (Jin10)