The yen continues to rebound, breaking through the important threshold of 150, as rising inflation strengthens expectations for interest rate hikes in japan.
① The Japanese yen has continued to strengthen recently, rising to 149.53 yen per dollar during trading on Friday, with an increase of up to 1.3%; ② Today's rise brings the accumulated appreciation of the yen's exchange rates to about 3% for the week; ③ The swap market currently considers the likelihood of the Bank of Japan raising interest rates in December to be 61%, about twice the expectation at the beginning of this month.
Latest research from the Bank of Japan: Ultra-loose monetary policy helps avoid years of deflation.
According to a research report released by the Bank of Japan, without the Bank of Japan's large-scale monetary stimulus plan, Japan may have faced several years of deflation starting around 2016.
Expectations of a rate hike in December by the Bank of Japan are increasing, and Japanese companies are issuing bonds on a large scale.
Expectations of a rapid rate hike by the Bank of Japan in December are quickly rising, with Japanese companies rushing to issue bonds.
Interest rates have added more pressure! Tokyo's CPI in japan has risen above 2%.
Tokyo's CPI (excluding fresh food) in November rose by 2.2% year-on-year, higher than the expected 2%, mainly due to the gradual reduction of energy subsidies. This exacerbates inflation in Japan, coupled with other data showing that the economic performance broadly aligns with the Bank of Japan's predictions, leading to a significantly increased market expectation of a rate hike. The probability of the Bank of Japan raising interest rates at the next meeting is 63%.
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