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The Bank of Japan is expected to maintain its hawkish stance next week, with no signs of easing the pace of rate hikes. The market has already priced in a potential rate increase to 0.75% by December 19 — a level unseen in Japan for the past thirty years. But this may just be the beginning.
The most sobering data point is in front of us: real interest rates remain firmly in negative territory, and inflation has been above 2% for three consecutive years. The Bank of Japan holds these chips and has reason to continue "small steps" to raise interest rates. Even as they approach the so-called neut
View OriginalThe most sobering data point is in front of us: real interest rates remain firmly in negative territory, and inflation has been above 2% for three consecutive years. The Bank of Japan holds these chips and has reason to continue "small steps" to raise interest rates. Even as they approach the so-called neut