Former Bank of Japan Chief Economist Says Market Expectations for Rate Hikes Are Too High, Yen Faces Risk of Decline

Former Bank of Japan chief economist and current Sompo Research Institute Plus executive economist Seisaku Kameda stated: U.S. Treasury Secretary Yellen has pushed market expectations regarding Bank of Japan interest rate policy too far. Some investors have even priced in the possibility of a 50 basis point rate hike or consecutive rate hikes. These expectations seem excessive and may need to be adjusted downward. Excessive expectations have brought about risks, and if the Bank of Japan fails to deliver, it could trigger a renewed weakening of the yen.