Questions are emerging over the outlook for BOJ rate hikes and efforts to reverse yen depreciation. The terminal level for the policy rate and the realities of a “world with interest rates” are being examined.
This article presents a discussion of BOJ rate-hike trends and the outlook for reversing yen depreciation, taking into account where the policy rate may peak.
It also provides an overview of how US interest-rate trends and global financial conditions may affect Japanese markets, and tells readers to watch how these factors will shape interest-rate trends going forward.