LIVE MARKETS-Don't expect the BOJ to rush, say ING

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DON'T EXPECT THE BOJ TO RUSH, SAY ING

The Bank of Japan, the only developed market central bank in hiking mode -- for now -- raised rates to a 30-year high of 0.75% in December, and is expected to keep hiking this year.

But Min Joo Kang, ING's senior economist for Japan and Korea says we shouldn't be expecting another hike any time soon.

She flags that headline Tokyo inflation eased to 2.0% year-on-year in December, below expectations, and core inflation slowed to 2.6%, and should decelerate further.

"With headline inflation expected to drop below 2.0%, and core inflation easing toward 2.0%, the BOJ is likely to carefully assess the impact of previous rate hikes before considering any further hikes," she wrote in a Friday note.

That could be bad news for the Japanese yen, which is already hovering around a one-year low on the dollar, and record low on the euro, levels which have caused Japanese authorities to threaten intervention to support their currency.

Kang says if the yen weakens, the BOJ hike could come sooner, in the second quarter.

(Alun John)

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