In an unexpected turn of events, experts, including a former Bank of Japan board member, suggest that further rate increases are unlikely this year due to the resulting market turmoil and Japan’s sluggish economic recovery.
Currently, it suggests a reduced likelihood of the BOJ implementing another rate hike before the end of the year, in contrast to the initial outlook immediately following the rate increase in July.“In the process of returning to normal monetary policy, it’s good that they decided to move from a world of almost zero interest rates to a normal 0.25%.”
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