“Bond purchases will now be phased out cautiously and will only begin in July. The end of bond purchases later than expected and unchanged interest rates disappointed and weakened the yen,” pointed out the Swiss group.
David Kohl, chief economist at Julius Baer, says details on how bond purchases will be gradually phased out are expected only at the next meeting, which would have disappointed investors.
“A tightening of policy at the next meeting is now very likely, but will most likely be implemented cautiously,” adds Kohl, who projects a ten basis point rise in rates in July.
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