#apro $AT Interest Rate Hike? Can Japan Raise Interest Rates?
The direct answer to the question of "Can Japan raise interest rates?" is: Yes! And there is a strong likelihood that it will be announced this week.
This is no longer speculation, but a highly consistent expectation in the market. Here is a summary of key information for you, and you can quickly understand the overall picture through the timeline below:
📅 Overview of the Bank of Japan's Interest Rate Hike Dynamics
Recent Action: No Change
· Time: July 2024
· Meeting Decision: Maintain the policy interest rate at 0.5% unchanged.
· Follow-up Dynamics: The market is already discussing the possibility of the next interest rate hike.
Upcoming Action: High Probability of Rate Hike
· Time: December 19, 2025 (this week)
· Market Expectation: The probability of an interest rate hike exceeds 94%, almost fully priced in.
· Expected Increase: Raise the policy interest rate from 0.50% by 0.25 percentage points to 0.75%
· Historical Significance: If realized, the interest rate will reach a new high in about 30 years, and the total interest rate hike for the year 2025 will be the largest in 35 years.
Future Outlook: The Path of Interest Rate Hikes May Continue
· Long-term Guidance: The market believes the endpoint of this round of interest rate hikes may be in the range of 1.0%-1.5%
· 2026 Expectation: There may be 1-2 more interest rate hikes.
The Bank of Japan not only can raise interest rates but is very likely to take action tomorrow (December 19). This is a step towards normalizing monetary policy, fully digested by the market, aimed at addressing persistent inflation and the depreciation of the yen.
The future path of interest rate hikes will depend on the sustainability of inflation, wage growth, and the complex domestic and international economic situation.
If you are interested in the specific impacts of Japan's interest rate hike on global carry trades, yen assets, or emerging markets, follow me and add my Binance ID: 819591468 to chat privately. 👏
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