Kapital Macro: Bank of Japan Still Likely to Further Raise Interest Rates

BlockBeats News, March 19th, Marcel Thieliant, Head of APAC at Capital Economics, stated that the Bank of Japan today kept interest rates unchanged, as widely expected by the market. However, there is still a possibility of further rate hikes, with a high likelihood of a rate hike at the meeting on April 30th to May 1st. The inflation rate is far above the Bank of Japan's 2% target. Furthermore, the wage increases resulting from this year's spring wage negotiations are larger than last year, which is expected to exert additional upward pressure on inflation in the coming months. Capital Economics predicts that by 2027, the Bank of Japan will raise the policy rate to 1.5%. (FXStreet)