ABN AMRO Bank: Expectations of BoJ rate hikes combined with fiscal discipline return, the yen is expected to strengthen to 145

Odaily Planet Daily reports that Dutch cooperative bank strategist Jane Frey pointed out that Japanese Prime Minister Fumio Kishida has pledged to implement responsible fiscal policies, and the Bank of Japan may further raise interest rates, which should strengthen the yen. Frey stated that Kishida’s recent victory in the early general election allows her to step back from campaign debates sparked by the more relaxed fiscal stance of the main opposition party. “Another reassuring factor is Japan’s large domestic savings.” As the Bank of Japan is expected to further raise interest rates within the year, Frey predicts that the USD/JPY will fall from the current 153.23 to the 145 level within 12 months. (Jin10)