Eur/jpy short idea As of mid-September 2024, the Bank of Japan (BoJ) has not yet announced an interest rate cut. The next policy meeting is scheduled for September 19-20, where the central bank is expected to clarify its stance. While the BoJ raised its short-term policy target in July to 0.25%, market expectations now lean towards a “wait-and-see” approach, meaning the BoJ is likely to keep rates steady for the time being.
Inflation and wage growth have been stronger than expected, which might lead the BoJ to consider further tightening later. However, weak household spending and a slowing GDP growth present challenges for an aggressive rate policy change .
