Since the Bank of Japan's interest rate hike this week is generally regarded as a foregone conclusion, the market's focus will be on how the Bank of Japan, led by Kazuo Ueda, explains the future interest rate path. People familiar with the matter revealed last week that even if borrowing costs were raised to 0.75%, Bank of Japan officials believe that the so-called “neutral interest rate” level has not been reached. Some officials even think that the 1% interest rate level is lower than the neutral rate.

Since the Bank of Japan's interest rate hike this week is generally regarded as a foregone conclusion, the market's focus will be on how the Bank of Japan, led by Kazuo Ueda, explains the future interest rate path. People familiar with the matter revealed last week that even if borrowing costs were raised to 0.75%, Bank of Japan officials believe that the so-called “neutral interest rate” level has not been reached. Some officials even think that the 1% interest rate level is lower than the neutral rate.