Japanese 10,000 yen banknotes arranged in Tokyo, Japan, on Saturday, Oct. 7, 2023.
Shoko Takayasu, Bloomberg | Bloomberg | Getty Images
Despite dovish comments from Japanese Prime Minister Shigeru Ishiba leading to a sharp plunge in the yen, market analysts aren’t budging from their Bank of Japan policy expectations for the longer term.
The yen slid to as weak as 147.15 against the U.S. dollar after Ishiba told reporters that the current economic climate does not require an additional rate increase. The currency clocked its largest single-day decline since June 2022 during the session.
“I do not believe that we are in an environment that would require us to raise interest rates further,” Ishiba said on Wednesday after meeting with Bank of Japan Governor Kazuo Ueda — who leads the rate-setting committee at the bank. The prime minister’s comments marked a drastic change in tone compared with the messaging on his recent campaign trail.
“This shift is particularly notable as the …