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Mitsubishi UFJ: The Bank of Japan needs to signal future interest rate hikes to boost the yen significantly
Sina Financial News Analysts at Mitsubishi UFJ said that even if the Bank of Japan ends its negative interest rate policy and yield curve control (YCC), tomorrow’s meeting of the Bank of Japan may not be a decisive turning point to boost the yen. “The Bank of Japan will have to release more confidence that further tightening is needed to trigger a stronger yen,” they said in the report. "MUFG currently expects the Bank of Japan to raise interest rates only once more in the fourth quarter of this year. USD/JPY is expected to fall against the Japanese yen in the second half of the year, but this will also require the Fed to cut interest rates closer to 4.00%.