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Flash Insights: BoJ delivers on both fronts
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Flash Insights: BoJ delivers on both fronts
Flash Insights: Bank of Japan—A “watchful” adjustment
The Bank of Japan raised its policy rate to more than a 10-year high on July 31, a decision driven by elevated wage growth and the yen’s weakness, both of which pose upside risks to the inflation outlook. Franklin Templeton Fixed Income economists believe that further rate hikes are likely, both this year and next.
The Bank of Japan (BoJ) raised interest rates for the first time since 2007 and has eliminated the yield curve control framework. Franklin Templeton Fixed Income Economist Rini Sen expects the bulk of further tightening will likely come in 2025 as the BoJ seeks to reach a sustainable 2% inflation target by end of fiscal year 2025.
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