Gelonghui May 17| Credit Agricole pointed out that possible intervention by the Bank of Japan will need support from a fundamental shift to successfully boost the yen. Although policy differences between the Federal Reserve and the Bank of Japan may have peaked, they have not subsided quickly. Although the Bank of Japan has achievedmonopolyarcadeIt has made a historic interest rate hike, exited the yield curve control (YCC), and ended the purchase of stock ETFs, but it still maintains its purchase of Japanese government bonds at YCC levels, and the Bank of Japan will not raise interest rates again in the near future.monopolyarcadeOur economists predict that the next rate hike will be in the second half of 2025. In the second half of 2024, the Federal Reserve's interest rate cut will provide support for the yen, but the increasing risk of Trump being re-elected as president will severely drag down the yen. Historically, when Trump announced trade tariffs, the yen was one of the worst performing currencies in the G10.
