Institution: Bank of Japan expected to see largest rate hike in 18 years

Odaily Planet Daily News The market generally expects the Bank of Japan to raise its benchmark interest rate to 0.5% on Friday. The 25 basis point rate hike will be the largest since February 2007, further showing signs that Japan's economy is finally returning to normal. The two key points that Bank of Japan Governor Kazuo Ueda proposed last month to consider when considering a rate hike have been basically clear. So far, the country's wage growth momentum looks strong, and there have been no major market shocks in the first few days of U.S. President Trump's second term. People familiar with the matter said earlier that Bank of Japan officials believe that there is a high possibility of a rate hike on Friday unless Trump creates too many negative surprises. Although Kazuo Ueda is unlikely to give any specific interest rate path to keep his options open, a statement that sounds too dovish may lead to a weaker yen and increase inflationary pressures. This may also make monetary authorities highly vigilant about the possible need to intervene directly in the market. (Jinshi)