Japan’s Central Bank Signals Potential for More Rate Hikes
783 sats \ 17 comments \ @TomK 28 Aug news
The Bank of Japan (BoJ) remains in lockstep with the Federal Reserve, maintaining a firmer monetary stance compared to other major central banks, such as the European Central Bank. BoJ’s Deputy Governor, Ryozo Himino, reiterated the institution's readiness to increase interest rates further, contingent on economic and price developments meeting expectations.
Himino emphasized that the BoJ will carefully monitor the impact of July’s rate hike and ongoing market dynamics. Should confidence in the bank’s economic and inflation forecasts grow, the BoJ is prepared to adjust its monetary policy accordingly.
The recent minor rate hike by the BoJ has already triggered an explosion in the Yen carry trade, revealing the immense fragility of international financial markets. The risks continue to grow.
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103 sats \ 7 replies \ @Coinsreporter 28 Aug
TBH, I've more faith in BoJ to recover from depression than I've in any other centeral bank around the world.
When they say, they'll monitor closely, japanese mean it.
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58 sats \ 5 replies \ @zx 28 Aug
I have the same feeling about the strong analytical and organizational capacity. Your comment led me to think how would a central bank 'monitor closely'.
Do you think all adjustments would necessarily need to be announced? If intentions to adjust were announced, would they necessarily have intentions to follow up with adjustments, and could central banks make unannounced micro-adjustments to see how the market reacts?
Not sure that I understand how rate adjustments flow into commercial banks and into the media consciousness.
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18 sats \ 0 replies \ @TomK OP 28 Aug
the least we can say is that the mainstream media is following exactly the playbook of their overlords in the central banks and trying to steer the markets that way. that's the only tool they have
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54 sats \ 3 replies \ @Coinsreporter 28 Aug
Yes, I agree. I'm also not sure about how intentions to announce and follow up would work in a macro scenario. But, I believe the Japanese would find a way out.
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68 sats \ 2 replies \ @xz 28 Aug
I think I understood the general underpinnings of the carry trade long ago, but I still don't get why markets react in the micro like they did August 5 2024.
https://cdn.satellite.earth/2c3d68f0bdb3aebb8619ffc97ea5f67b5c075dc0b3208a5a27a6c18d59d9418c.png
Nor if the rate hike was a reaction due to market sentiment or what is Japan's game?
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0 sats \ 1 reply \ @TomK OP 28 Aug
They need to hike to muddle through their monetary mess with rising inflation
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68 sats \ 0 replies \ @xz 28 Aug
Ah yes. Stemming the tide with hedonic regression and a broom.
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17 sats \ 0 replies \ @TomK OP 28 Aug
True
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80 sats \ 1 reply \ @OT 28 Aug
Why would they raise after what happened? Sounds like an empty threat to me.
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33 sats \ 0 replies \ @TomK OP 28 Aug
with all the madness in the fiat world, you also have to consider that one or the other might act rationally and for the long term. and in the case of Japan, that would mean saving the yen and attracting massive capital from abroad.
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80 sats \ 0 replies \ @nostrman 28 Aug
The West has not consented yet to this move by Japan. This is going to be an interesting proposition.
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47 sats \ 2 replies \ @Satosora 28 Aug
They havent made an adjustment yet, right?
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20 sats \ 1 reply \ @TomK OP 28 Aug
After the shot two weeks ago, no
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25 sats \ 0 replies \ @Satosora 28 Aug
I wonder if they are sweating over the brics currency? I know they limit a lot of trade from china.
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10 sats \ 0 replies \ @BitcoinAbhi 29 Aug
Japan is not going anywhere. I think they are in deep trouble. How they think they can monitor.
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0 sats \ 0 replies \ @Satoshi__Nakamoto 28 Aug
This is not good for other countries
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0 sats \ 0 replies \ @160ed04091 28 Aug
to my knowledge If the BoJ does proceed with further rate hikes, it will be important to monitor how these changes impact Japan’s economy and financial markets, as well as the broader global economic landscape.
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