pull down to refresh
58 sats \ 5 replies \ @zx 28 Aug \ parent \ on: Japan’s Central Bank Signals Potential for More Rate Hikes news
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.
reply
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.
reply
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.
Nor if the rate hike was a reaction due to market sentiment or what is Japan's game?