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We Expect BoJ to Stay on Hold - Action Forex

Early Tuesday we await the rate decision from the first policy meeting from Bank of Japan in 2024. We expect the Bank of Japan to stay on hold. Wage growth remains the key missing piece of the puzzle before they can raise the policy rate out of negative and let go of the yield curve. We expect they will be ready to do that once we have hard evidence that the Shunto (spring wage negotiations) results in wage acceleration.

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