The head of international rates at JPMorgan Asset Management said the Bank of Japan will not raise interest rates again for a while, with further tightening likely depending on the fate of the U.S. economy.
“There is a path for the Bank of Japan to move again, but that is the path where the Federal Reserve cuts and they manage to stabilize the U.S. economy,” said Seamus MacGorain at the firm, which manages $3.3 trillion in assets. “If we are in a recession, of course they are ready now.”
JPMorgan Asset has made bets that will pay off if the yield spread between short- and long-dated Japanese government bonds narrows. The firm is also among those charting the BOJ’s next policy move after a busy week of trading.
