Analysis: Economic Growth Under Pressure, Japanese Prime Minister May Hope to Delay BOJ's Interest Rate Normalization

Odaily News BlueBay Chief Investment Officer Mark Dowding stated in a report that Japanese Prime Minister Sanae Takaichi is highly focused on achieving economic growth. From this perspective, some believe she would want to delay the Bank of Japan's move towards interest rate normalization. However, he noted that a more dovish Bank of Japan could raise concerns about prolonged inflation overshooting, which would put pressure on the Japanese government bond (JGB) yield curve. Mark Dowding said, "We remain optimistic that the 10- to 30-year Japanese government bond yield curve can flatten further in the medium term." (Jin10)