The potential unwinding of the yen carry trade due to the BOJ raising rates could indeed introduce significant volatility into the FX markets.
Yen carry trade ….things could get interesting in the FX markets if this gets unwound due to BOJ raising rates pic.twitter.com/MSYw9s0qHy
— Tracy Shuchart (𝒞𝒽𝒾 ) (@chigrl) March 18, 2024
Will the Bank of Japan end its negative interest rate policy? Some perspective:
– The last time the Bank of Japan hiked rates was 17(!) years ago in 2007.
– The policy rate has been negative for 8(!) years.
– Since 2007, headline #inflation averaged 0.6%(!)
– Since 2007, #GDP… pic.twitter.com/3vWS38f0Qj— jeroen blokland (@jsblokland) March 18, 2024
Bank of Japan is expected to end its negative interest rates this week, marking 1st rate hike since Feb2007 in a turning point for #BoJ's long-running monetary easing pol. A lot' has changed globally since last BoJ hike 17yrs ago. SRP has a great overview. https://t.co/JDFzHAik3l pic.twitter.com/3MaeNQUKSh
— Holger Zschaepitz (@Schuldensuehner) March 18, 2024