Japan's Central Bank May Raise Interest Rates Again This Year

According to Odaily, PGIM Fixed Income has reported that the Bank of Japan might increase its benchmark interest rate by another 25 basis points this year. The report suggests that if Japanese consumers significantly boost their spending, the central bank could expedite the rate hikes. It highlights that the Bank of Japan is gradually moving towards a nominal policy rate of around 2%, with the latest increase bringing the rate to a crucial psychological level of 0.5%. In the long term, PGIM believes that the Bank of Japan considers a nominal rate of at least 1% to be appropriate.