Moody's Analytics Predicts Bank of Japan Could Raise Rates to 1% by Mid-Year

Deep News08:50

Moody's Analytics stated in a report that it expects the Bank of Japan to keep interest rates unchanged this week, with a potential increase to around 1% near the middle of the year. The agency noted that conflict in the Middle East heightens the risk of inflation reaccelerating, but the uncertainty stemming from the conflict will likely lead the central bank to maintain its current stance. It added that renewed weakness in the Japanese yen could prompt the Bank of Japan to move forward with an earlier rate hike later this year. However, the agency also indicated that slowing wage growth and sluggish real economic data make it difficult to support an aggressive tightening plan beyond 1%. The Bank of Japan is scheduled to announce its interest rate decision on Thursday.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment