According to analysts from Danske Bank the Bank of Japan will cut rates at the next meeting to -0.3%, helping to stabilise the yen. Key Quotes: “The BoJ has been severely challenged recently by a sharp appreciation of the JPY. This clearly works against the BoJ’s objective to get inflation higher. With data being on the soft side and wage negotiations pointing to slowing wage growth, the BoJ is in a pinch and, in our view, will need to take action at the meeting on 28 April.” “We look for a rate cut of 20bp to -0.3%. This is more than the market is pricing in and we believe that this would stabilise USD/JPY and expect it to recover gradually as we also look for higher US short yields to help weaken the JPY in the medium term.” For more information, read our latest forex news.