Many people associate 'interest rate hikes' with the Federal Reserve's previous aggressive rate hikes, but Japan's increase this time is completely another 'style', taking small steps slowly and repeatedly clarifying, with the core being to draw a line with 'aggressive tightening'. The 'normalization step size' emphasized by the Governor of the Bank of Japan precisely summarizes the rhythm of this policy adjustment.
From the perspective of the interest rate increase, this time it was only raised by 25 basis points to 0.75%, which is a very mild adjustment. Compared to the Federal Reserve's previous single increases of 50 or even 75 basis points, Japan's 'step size' is indeed negligible. More importantly, the governor clearly stated that the policy will 'highly depend on data'; whether to continue raising interest rates and by how much will depend on inflation and wage growth data, with no predetermined aggressive path.
From the perspective of policy continuity, the stock effect of Japanese government bonds held by the Bank of Japan is still at work, meaning that even with interest rate hikes, the accommodative financial environment will continue for a period of time. It's like a slow train that has been running for thirty years; it is now just lightly pressing the accelerator to prepare to change direction, rather than slamming the brakes to stop abruptly. Therefore, do not view Japan's interest rate hike through the lens of 'aggressive tightening'; 'normalization in small steps' is the correct approach.@男神说币 #比特币流动性 $BTC
