Morgan Chase: The Central Bank of Japan is expected to hold

On 29 July, Yuxuan Tang of Morgan Chase Private Bank quoted the market consensus in a study that the Bank of Japan expected to remain in place at the end of its two-day meeting on Friday. According to the Asian interest rate and foreign exchange strategy manager, the Central Bank had previously raised the policy rate to 1 per cent in June. Tang indicated that the current market only reflected the expectation of a full increase by the end of the year. “The slowdown in inflation and weak wage growth justify the price-fixing of the market to reflect lax expectations”, she said that, despite the energy shock, inflation indicators had eased in the second quarter, thanks to large-scale government subsidies, and real wage growth had remained around zero。