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To Raise Interest Rates or Not? Japan is really hard to choose this time...
Main text:
Kazuo Ueda has released a key signal:
On one side is the energy price increase driven by the situation in the Middle East, pushing inflation higher;
On the other side is economic pressure, with growth slowing down.
Simply put—
There are reasons to “raise interest rates,”
And also pressures not to.
Before the interest-rate decision, he did not give a clear direction,
Instead emphasizing that the hardest part right now is “how to make the choice.”
The market has already begun to expect:
Inflation expectations may be raised,
But growth expectations may be revised downward.
On the surface, it looks like a policy dilemma,
But in essence, it’s uncertainty in the global capital environment.
Some people are waiting for the outcome,
And some people are already judging the impact the outcome will bring in advance.