In their latest outlook report on the Bank of Japan (BOJ) monetary policy, the analysts at JP Morgan expect the Japanese central bank to cut the benchmark interest rates this September.

“We now expect a 20bp rate cut in September. Expect a cut in the short-term policy rate from -0.1l% to -0.3% in September against the risk of financial tightening after the expected Fed rate cut. If the US-China trade negotiations collapse and equity prices plunge, the BOJ may increase the amount of ETF purchases in July.”