The Bank of Japan will avoid raising interest rates again anytime soon, with further tightening likely dependent on the fate of the U.S. economy, according to the head of global rates at JPMorgan Asset Management.
"There’s a path for the Bank of Japan to move again actually, but that’s the path where the Federal Reserve cuts and they do manage to stabilize the U.S. economy,” said Seamus Mac Gorain at the firm, which oversees $3.3 trillion in assets. "If we’re in recession, of course, they’re done now.”
JPMorgan Asset has wagers that profit when the yield gap between shorter and longer-term Japanese bonds narrows, and is among those mapping out the BOJ’s next policy step after a wild week of trading.
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