Bank of Japan will take longer to hike rates given the yen's rapid strengthening, BMI says

The Bank of Japan will adopt a more cautious approach to hiking interest rates to avoid rapid appreciation in the yen after the recent global market turmoil, Fitch Solutions' BMI said in a recent note. "We expect that the BoJ will take a more cautious approach and only hike by 25bps this year to 0.50%, down from our previous view for 50bps," said BMI's analysts in a note on Wednesday. Interest rate hikes by the BOJ led to the unwinding of the popular yen carry trade, which led to a sharp sell-off in global ...