HSBC’s Bank of Japan outlook, in brief from a note.

HSBC target H1 2023 for the Yield Curve Control (YCC) range to expand once more, but say they can’t pinpoint the exact date.

On the yen, HSBC note other likely domestic developments that could cause USD/JPY to fall this year. Including:

  • resident investors FX-hedging their foreign investments
  • an improvement in Japan’s balance of payments in the midst of JPY undervaluation (based on its real effective exchange rate)
  • a pick-up in inbound tourism

For your diaries, note that the final BOJ meeting with Governor Kuroda will take place on March 9 &10. The first and second meetings presided over by the next governor will occur on April 27 & 28 and June 15 & 16.

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