Analysis: Economic growth is under pressure, and the Japanese Prime Minister may hope to delay the normalization of interest rates by the Bank of Japan.

Odaily Planet Daily, BlueBay Chief Investment Officer Mark Doudin said in a report that Japanese Prime Minister Sanae Takachi is highly focused on achieving economic growth. From this perspective, some people believe she would want to delay the Bank of Japan’s move toward normalizing interest rates. However, he said that a more dovish Bank of Japan could raise concerns about a longer period of inflation overshoot, which would put pressure on Japan’s government bond yield curve. Mark Doudin said, “We still look favorably on the Japan government bond yield curve for the 10 to 30-year maturities becoming even more flat in the medium term.” (Jinzi)