JPMorgan Asset Gameplans for Risk BOJ Hikes Are Done This Year
- Fund has positions that benefit from flatter Japan bond curve
- US economy avoiding recession is pivotal to BOJ’s next hike
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The Bank of Japan will avoid raising interest rates again any time soon, with further tightening likely dependent on the fate of the US economy, according to the head of global rates at JPMorgan Asset Management.
“There’s a path for the Bank of Japan to move again actually, but that’s the path where the Federal Reserve cuts and they do manage to stabilize the US economy,” said Seamus Mac Gorain at the firm, which oversees $3.3 trillion in assets. “If we’re in recession, of course, they’re done now.”