- It is not clear when next rate hike would be
- But Takaichi’s approach is likely to be one that warrants caution
- USD/JPY unlikely to surge above 155 as inflation expectations remain low
- Weak yen is positive for the economy when in the recovery phase
It’s not his first warning to the BOJ as he mentioned earlier this week that October would be “too early” for the next rate hike. In any case, the quick decline in the Japanese yen currency won’t help Takaichi’s case in wanting a slower pace on rate hikes. So, there’s a balance to be struck
Adviser to Japan’s Takaichi says BOJ should be careful about raising interest rates