JPMorgan Asset Management: BOJ expected to avoid another rate hike in the near term

JPMorgan Asset Management says the Bank of Japan will avoid another rate hike in the short term and further tightening may depend on the direction of the U.S. economy. “There is actually a path for the BOJ to act again, but it's a path where the Fed cuts rates and manages to stabilize the U.S. economy,” noted Seamus Mac Gorain, the firm's head of global rates. “Of course, if the U.S. goes into recession, the road is blocked.” JPMorgan Asset Management is betting on a narrowing of the yield spread between short- and long-term Japanese government bonds.