#日本央行升息 Will the Bank of Japan raise interest rates sharply? Officials say a 1% rate is not enough
The Bank of Japan is about to make a big move again! Insiders revealed that the Bank of Japan not only plans to raise interest rates next week, but will continue to do so afterwards, with a high probability that the rate will break 0.75%. What is even more surprising is that some officials believe that even raising it to 1% would not reach the neutral interest rate.
It is important to know that the Bank of Japan originally estimated the nominal neutral interest rate range to be between 1% and 2.5%. Now, officials feel that the upper and lower limits of this range may not be accurate, and even if data is updated, the range will not significantly shrink. This means that the Bank of Japan's path to raising interest rates is much longer than the market imagines.
It is worth noting that Japan has long maintained ultra-low interest rates, and now continuously signals rate hikes, which is undoubtedly a major shift in monetary policy.
How much impact do you think the Bank of Japan's rate hike operation will have on the global financial market? Share your thoughts in the comments!