The Bank of Japan kept the benchmark interest rate unchanged at 0.75%, with a voting result of 6-3, significantly raising the inflation forecast while lowering the growth projection.

The key divergence in this meeting lay in the fact that the hawkish members explicitly expressed a more proactive stance on interest rate hikes. Nakagawa, Takada, and Tamura jointly proposed to raise the short-term interest rate target from 0.75% to 1.0%. The Bank of Japan reiterated that it would continue to increase interest rates based on developments in the economy, prices, and financial markets, and emphasized the need to closely monitor the impact of the situation in the Middle East on the economy and prices.

wallstreetcnApr 28 14:21

Inflation Eases, Delivering 'Timely Relief': Japan's Real Wages Turn Positive for the First Time in 13 Months, Potentially Clearing the Path for a Central Bank Rate Hike in April

Boosted by easing inflation, Japan's workers have seen their real wages grow for the first time in 13 months. This positive development is expected to bolster consumer confidence and provide support for the Bank of Japan and the government in achieving key policy objectives.

Zhitong FinanceMar 9 10:43

The Japanese stock market surpassed 59,000 points for the first time in history! Diminished risks of central bank interest rate hikes, with NVIDIA's earnings report providing a boost.

①The Nikkei 225 Index hit a new all-time high during trading, surpassing the 59,000-point mark for the first time. This was mainly due to diminishing expectations of further interest rate hikes by the Bank of Japan and a rise in Japanese domestic technology stocks driven by NVIDIA's robust earnings report. ②The dovish appointments at the Bank of Japan eased market concerns, with the appointments of Rikuo Asada and Ayano Sato reinforcing expectations of more accommodative monetary and fiscal policies, which propelled the Japanese stock market higher.

cls.cnFeb 26 14:18

Nikkei Hits Fresh Closing High, Led by Metal, Tech Stocks -- Market Talk

WSJFeb 25 16:01

Hawkish expectations rise! Majority of economists predict the Bank of Japan will raise interest rates earlier than anticipated.

Market expectations for the Bank of Japan's interest rate hike have been brought forward significantly. The chairman of the Japan Banking Association recently stated that the central bank could start raising interest rates as early as March or April. A Reuters survey showed that most economists expect the policy rate to be raised to 1% by the end of June, with the consensus expectation for a rate hike shifting from before September to the first half of the year. Lagging inflation data poses a 'blind flight' challenge for the April meeting, and the market is closely watching whether Masako Takagi will pressure the central bank to maintain low interest rates.

wallstreetcnFeb 19 17:48

As Japan's election approaches, market volatility surges! Japanese investors face the most tense moment in a decade.

Ahead of the election, Japanese investors have rarely been this nervous. According to an analysis by Yilong Suda, a senior cross-asset strategist at Nomura Singapore, the implied volatility of the Nikkei 225 Index—a measure of expected market fluctuations that typically rises during periods of heightened uncertainty—surged significantly ahead of the vote on February 8.

FX168Feb 4 11:11