The Bank of Japan may raise interest rates in the near future. This was reported by Zamin.uz.
According to recent statements from bank officials, the depreciation of the yen could lead to an increase in the inflation rate. For this reason, financial markets are preparing for upcoming changes.
In recent weeks, statements from the Bank of Japan regarding inflation risks have mainly been related to the depreciation of the yen. Following meetings between Prime Minister Sanae Takaichi and Bank Governor Kazuo Ueda, the possibility of raising interest rates has emerged.
Additionally, decisions by the U.S. Federal Reserve may also affect the yen's exchange rate. The Bank raised the interest rate by 0.5 percent in January and has maintained it at a stable level since then.
However, the depreciation of the yen and rising wages are increasing inflationary pressure, raising the likelihood of another interest rate hike. According to experts, if the Bank raises interest rates, the pace of the yen's depreciation may slow down and the inflation rate could be brought under control.
At the same time, confidence in the bank's ability to keep interest rates low over the long term is declining in financial markets.
