Japan is not raising interest rates, which is good news. I didn't expect that a rate hike in Japan could have such a big impact on the global market. I underestimated the Japanese. I felt that they have more influence than the big country in the East.
Former Bank of Japan board member Makoto Sakurai: The Bank of Japan is not expected to raise interest rates again this year
Former Bank of Japan board member Makoto Sakurai said that the Bank of Japan is not expected to raise interest rates again this year, given the recent rate hike that caused market turmoil and the low possibility of a rapid economic recovery.
"The central bank will not raise interest rates again for at least the rest of this year," Makoto Sakurai said in an interview last Friday. "It is not ruled out that there will be another rate hike before the end of March next year."
The recent market turmoil and the Bank of Japan's response have made market participants wary of the outlook. Money market pricing shows that the possibility of the Bank of Japan raising interest rates this year has dropped significantly. Bank of Japan Deputy Governor Shinichi Uchida promised not to raise interest rates when the market is unstable.
"In the process of normalizing monetary policy, the central bank raised interest rates from near zero to 0.25%, which is a good decision," Makoto Sakurai said. But this step is energy-intensive, so the central bank should wait and see for a while before further rate hikes, he added. (Global Market Report)
