Yuxuan Tang, head of Asia rates and FX strategy at JP Morgan Private Bank, said
in a note market consensus expects the Bank of Japan to stand pat at the two-day
policy meeting ending Friday. Tang noted the BOJ raised its policy rate to 1% in
June and that markets currently price only one full rate hike by year-end. She
said slowing inflation and weak wage growth support the market’s relatively
dovish pricing; despite energy-driven pressure, large government subsidies
helped ease Q2 inflation and real wages have remained roughly flat.
