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Officials from the Bank of Japan have consecutively sent signals, and over 70% of observers expect an interest rate hike next week.
Among 53 economists, about 74% predict that the Bank of Japan will raise interest rates at the end of its two-day meeting on January 24.
The Bank of Japan governor stated that a decision on whether to raise interest rates will be made next week, causing a short-term appreciation of the yen, and the two-year Japanese government bond yield rose to its highest level in 17 years.
Overnight Index swaps indicate that the market bets on a 73% probability of the Bank of Japan raising interest rates this month, and an 86% probability of a rate hike by the end of March. Analysts believe that compared to earlier views this month, the governor today provided clearer guidance on what might be discussed at the meeting.
Japanese investors continue to withdraw, reducing their foreign Assets for the third consecutive month!
In 2024, investors in Japan were net sellers of overseas Stocks, with most of the sell-offs occurring in the last quarter.
Bank of Japan to Discuss Interest Rate Hike Next Week - Deputy Chief
The Global bond sell-off has spread to Japan, with the 40-year bond yield rising to its highest level since 2007.
On Tuesday, the 20-year bond yield in Japan reached its highest level since 2011; inflation and fiscal concerns led to a significant rise in global bond yields.
Wall Street investment banks are all bullish: Japanese stocks are expected to reach new highs by 2025!
Stock strategists indicate that, driven by corporate governance reforms and strong profits, Japan's stock market is expected to reach a new historical high in 2025.