Oxford Economics: The Bank of Japan is expected to raise interest rates only once before mid-year.
the Oxford Economic Research Institute stated: "If the Bank of Japan continues to lag behind the situation, the term premium is very likely to rise. The rise in Japanese government bond yields will worsen fiscal conditions, weaken the yen, and intensify inflation expectations, which in turn will increase the pressure for the yield curve to steepen further.
The market expects the Bank of Japan to take action first, but the outcome may disappoint them. The Bank of Japan is expected to keep the interest rate unchanged at 0.75% this week and to raise it only once more before mid-2026, reaching a final rate level of 1%."
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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