Japanese media reports: The Bank of Japan determines that Trump's inauguration has not yet caused a shock and will resume interest rate hikes on Friday.
① Reports on Thursday evening indicated that most of the Bank of Japan's policy board members would approve the interest rate hike proposal on Friday, with representatives from the government also accepting this decision; ② According to informed sources, the trend of rising wages in Japan and the market conditions following the inauguration of President Trump in the USA have led officials to determine that it is now possible to continue advancing the rate hike; ③ The anticipated 25 basis points increase would be the largest rate hike by the Bank of Japan since 2007.
Is the Bank of Japan's rate hike on Friday a foregone conclusion? The subsequent rate hike path may become the focus.
Considering the strong wage growth and the absence of significant market shocks since Trump's inauguration, the market widely expects the Bank of Japan to raise interest rates on Friday, with the focus shifting to the subsequent interest rate path. In addition to the post-meeting statements from Ueda and Nakaso, the quarterly inflation forecast released by the bank is also noteworthy. Morgan Stanley believes that with Trump officially taking office, Japan-U.S. relations are likely to improve, combined with the 'weak dollar' policy advocated by the Trump administration, which may support the Bank of Japan's future interest rate hikes.
The largest interest rate hike in 18 years? Tomorrow will be a big day for the Japan market...
① The Bank of Japan will conclude its first monetary policy meeting of the year this Friday, which will also make it the first major central bank globally to announce an interest rate decision since the inauguration of USA President Trump; ② Given that the market is generally expecting the Bank of Japan to potentially raise interest rates again after a six-month interval, this may be a crucial moment for Japan and even the global market...
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