JPMorgan Predicts BOJ to Raise Interest Rates by 15bps at Next Week's Meeting
Publication Time:2024-07-24 14:27:07
Ayako Fujita, an economist at JPMorgan, stated in a report that the Bank of Japan is likely to take action at its upcoming meeting and increase the policy rate by 15 basis points to reach 0.25%. Fujita believes that the BOJ has long hinted at a policy of raising interest rates to respond to increased confidence. She further noted that the recent momentum of wage growth and the recovery of the consumption market since spring provide grounds for this move. Additionally, it is expected that the BOJ will also announce plans regarding future strategies for purchasing Japanese government bonds at next week's meeting. The market generally expects that over approximately two years, the monthly purchase amount of Japanese government bonds by the BOJ will gradually decrease from 6 trillion yen to 3 trillion yen.
Bank of Japan
interest rate hike
Wage Growth
policy rate
consumption recovery