Betting on more aggressive monetary easing in some advanced economies risks making the Bank of Japan all the more conspicuous for considering raising rather than cutting rates.
Bank of England Governor Andrew Bailey said his central bank could become “a little more activist” in its approach to cutting interest rates, in a comment published on Thursday. The euro is heading for its longest daily losing streak since April as traders speculate on increasingly aggressive interest rates. interest rate cut at the European Central Bank Weak economic data in Canada and Sweden have also increased the chances of further easing in those markets.
“The move toward faster easing” outside Japan means “the BOJ needs to be cautious,” Krishna Guha and Marco Casiraghi, central bank analysts at Evercore ISI, wrote in a note on Thursday. “It will be harder to raise rates because others are cutting them faster.”
