Standard Chartered economists Chong Hoon Park and Nicholas Chia expect the Bank of Japan to implement a 25 basis points rate increase in September, signaling a cautious step towards monetary policy normalization, according to FX Street.
The bank is predicted to continue a gradual approach to tightening, maintaining a steady path of policy adjustment through the remainder of the year, including into the fourth quarter.
This outlook comes as the Japanese Yen remains sensitive to shifts in Bank of Japan policy, influencing FX and equity markets in Japan amid ongoing global economic challenges.