MUFG Video - Japan Optimism, the BoJ and the Yen

Will the BoJ hike rates and what will happen to the yen?


The Nikkei 225 has seen a 20% increase year to date, hitting a new high in both local currency and US dollar terms. This reflects a rise in investor confidence in Japan's economy and the end of its deflationary phase. 

In this video, Derek Halpenny, Head of Research, Global Markets EMEA & International Securities at MUFG, discusses the expectation of a rate hike by The Bank of Japan (BOJ) in the next meeting, reflecting confidence in ongoing wage growth and inflation. Nevertheless, global economic conditions and inflation rates in other nations could affect the potential for yen appreciation. Despite a projected slowdown in the US economy, it is expected that the yen will drop below the 140 level and reach the mid-130s by year-end.

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