The Japanese On March 3, 2014, the yen was up 3.42% versus the US dollar Tuesday The Bank Of Japan The world was stunned when the Fed decided to raise the benchmark interest rate from 0.2% to 0.5%. Japan’s The central bank was the only global bank to not raise benchmark interest rates. Authorities have maintained a close to zero rate of return for government bonds since 2016.
The Central Bank Of Japan Increase Interest Rates for the First Time Since 2006
Over In the last two months, there have been many discussions about Bank Of Japan (BOJ) Governor Haruhiko Kuroda The BOJ chief will be replaced soon by a successor. KurodaGlobal markets were stunned by the news however December 20, when he explained that the BOJ would allow Japan’s The 10-year bond yields to go up to 0.5%, from the previous highest of 0.25%.
The Move follows the yield curve control mechanism of the Japanese Central bank since September 2016. The BOJ explains Tuesday The change is coming. “improving market functioning and encouraging smoother formation of the entire curve.” Performance and maintaining accommodative financial circumstances.”
Mizuho Bank CNBC representatives explained that this move was a reflection of the belief in future aggressive moves by the BOJ. HoweverThe financial institution stated that these risky bets could not pay off. Tuesday. “The popular stake does not mean that this is the political reality or the expected political perception,” Additional Mizuho Bank.
Economist Lover of gold Peter Schiff The BOJ is expected to raise rates once again, which is what the betting company is doing. “The Bank of Japan blinked and turned in the opposite direction”, Schiff tweeted. “After Artificially holding the 10-year JGB yield to 0.25%, BOJ just increased the rate target to 0.5% More Walks are coming. In This means that the US dollar, asset prices and inflation will decline. Hedge fund manager James Lavish said The BOJ tried to score one more goal.
“At this point, the Bank of Japan has removed the goalkeeper and is expecting a last second equalizing goal,” Lavish tweeted. “Maybe Go to additional time. Maybe You somehow manage to do it. Except They are now down 5-1 The The game is over and they don’