Japan's Central Bank Expected to Maintain Interest Rates Amid Economic Uncertainty

According to BlockBeats, T. Rowe Price's co-portfolio manager for diversified income bond strategy, Vincent Chung, has indicated that the Bank of Japan is likely to keep interest rates unchanged during its upcoming meeting due to uncertainties surrounding economic growth. The appreciation of the yen and concerns over tariffs potentially impacting economic expansion may lead the central bank to delay further rate hikes. The uncertainty surrounding tariffs has increased the risk premium on U.S. assets, necessitating investor attention to potential trade agreements that could mitigate this risk. Chung noted that if volatility in the U.S. Treasury market decreases, the safe-haven yen long positions should exert short-term pressure on the yen's appreciation.