Motoon's private bank: The Central Bank of Japan expects the yen to hover around 160 for the next 6 to 12 months

On 29 July, the head of the foreign-exchange strategy of Morgan Chase’s private bank, Asia, Tang Rainsoon, stated that the Central Bank of Japan would negotiate interest this week and that the market was generally expected to maintain interest rates, but the focus would be on its forward-looking direction. The slowdown in inflation and weak real pay growth justified the pricing of market-based doves. Despite the continuing energy price shocks, several inflation indicators fell in the second quarter as a result of large-scale government subsidies, while real wage growth continued to be close to zero. The rationale for further substantial tightening of monetary policy remains limited in terms of the two broad policy objectives of inflation and economic activity, which are of clear interest to the Central Bank of Japan. The bank maintains a neutral view of the United States dollar to the Japanese yen, and expects to hover around near 160 for the next 6 to 12 months。