This Economist: Japan's Central Bank Raises Interest Rates, U.S. Economic Data Falls Short of Expectations and Other Factors Shake the Market
At the beginning of this week, influenced by factors such as the Bank of Japan's interest rate hike and disappointing U.S. economic data, Japan's securities market and foreign exchange market experienced significant fluctuations. Previously, Haruhiko Kuroda, Governor of the Bank of Japan stated that this increase in policy rates would not have a major negative impact on the economy. However, Japanese economists pointed out that there were still shocks and fluctuations in the market. In future, The Bank of Japan may continue to raise interest rates.
Hideaki Kumano, Chief Economist at Dai-ichi Life Research Institute: Despite a small increase in interest rates by the Bank of Japan it triggered large chain reactions such as yen appreciation and stock market decline. Therefore I believe that BOJ’s rate hike has actually caused a major shock to markets; nevertheless I think BOJ will not stop its normalization process because of this. At their press conference on July 31st , The Bank Of Japan already announced if inflation stabilizes above 2% as expected they will continue raising interest rates according to their plan although no specific time was given.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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