Sure, the RBA froze interest rates on Tuesday, but there's plenty of pain to come 
Inflation: why prices look likely to stay high in the UK and Ireland, and what that means for mortgages 
Why Africa can be the beating heart of South Korea’s technology industry 
As treasurer, Bill Hayden set Labor on the path to economic rationalism 
Why central banks are too powerful and have created our inflation crisis 
What central banks are doing to safeguard financial stability and why they must proceed with caution 
Extraordinary Vietnam fraud case exposes the inherent vulnerabilities of banks 
The Bank of Japan (BoJ) in its November 1 monetary policy meeting mentioned its optimism over the growth of the economy, with a moderate rate of recovery observed in the global demand. The central bank is expected to maintain an easing bias, but shall not remain compelled to ease in the medium term.
We foresee that the USD/JPY currency pair will test the 130 level towards the end of 2017, for the first time since April 2002. Also, the 10-year Treasury yield spread will likely widen, at over 250 basis points for the first time since 2010.
The BoJ aims at achieving the 2 percent inflation target with expectations of buying around JPY80 trillion of government bonds per year. Upward pressure on global yields since the US election could potentially mean more QE, though.
If Trump successfully implements his fiscal plan, consumer inflation will surely rise, giving the Federal Reserve wider space for an interest rate hike. Thereby, rising Fed fund rate will increase the cost of borrowing. After the Presidential election result, JPY witnessed a massive selling against U.S. dollar, sending the USD/JPY higher by 17 percent to 118.67 in just a month’s time.
Lastly, the BoJ’s first two-day monetary policy meeting for 2017 will take place on January 30-31. We foresee that the central will remain committed to holding its 10-year JGB yields near zero, while keeping interest rate steady at -0.10 percent.
