Central Banks
Yen Falls as Earthquake Raises Bar for BOJ to End Negative Rates
- Yen to see fresh selling pressure as January move now unlikely
- Even policy change in first half seems hard: Mizuho’s Karakama
A damaged vehicle under a collapsed house following an earthquake in Nanao, Ishikawa Prefecture on Jan. 2.
Photographer: Soichiro Koriyama/BloombergThis article is for subscribers only.
The yen is coming under renewed pressure as a powerful earthquake that hit Japan on New Year’s Day makes it harder for the Bank of Japan to abolish negative interest rates this month.
Morgan Stanley MUFG Securities Co. changed its call for the BOJ rate decision this month and now sees it leaving current policy in place, partly as the central bank has to assess the adverse impact from the Noto Peninsula disaster on the economy. While speculation about a January tweak is receding, many still expect an end to negative rates in April, or later in 2024.