Just finished watching the speech of the Governor of the Bank of Japan after the interest rate hike in Japan.
Okay, let me give you a colloquial, key point version of 1-2-3-4 summary:
1. This interest rate hike is not a 'shift to tightening,' but a small step towards normalization.
The Governor repeatedly emphasized that Japan has not entered an aggressive rate hike cycle; this is more about moving slightly from 'extremely loose' to a normal state, so do not interpret it as a comprehensive withdrawal.
2. Whether to continue raising interest rates depends on data, not a preset path.
He clearly stated that the Bank of Japan does not have a fixed path for interest rate hikes and will not follow a set rhythm like the Federal Reserve; everything depends on whether inflation, wages, and economic data hold up.
3. Whether wages and inflation can form a positive cycle is a core observation point.
What is currently most concerning is not short-term prices, but whether companies can continue to raise wages and whether inflation can stabilize near the target. If wages do not keep up, they will not rashly tighten further.
4. Volatility in the financial markets will be closely monitored, as they do not wish to cause shocks.
The Governor specifically mentioned that they will closely watch Japanese bonds, exchange rates, and overall market reactions and do not want interest rate hikes to trigger severe volatility; the Bank of Japan will still remain 'very cautious.'
This interest rate hike is more like 'testing the waters,' not declaring war, with a slow pace, soft attitude, and leaving room for maneuver $BTC
