T. Rowe Sees BOJ Policy ‘San Andreas Fault’ of Global Finance Is at Hand
- BOJ policy tightening ‘a real and present danger’: Husain
- Japan policy impact may be more important than Fed rate moves
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Policy tightening by the Bank of Japan, the last bastion of ultra-low interest rates, may send shock waves through the financial world. Lift-off could be at hand, according to T. Rowe Price.
“Japanese monetary policy could be the San Andreas fault of global finance,” Arif Husain, head of international fixed income and chief investment officer at the $1.3 trillion fund, wrote in a report. “I know the BOJ is conscious of the effect it could have on global markets, but it’s a real and present danger, in my view. I certainly think it’s something that should be on our radar as investors.”