Market analysis: The Central Bank of Japan may raise interest rates by another 25 basis points this year

Odaily Planet Daily News PGIM Fixed Income stated in a report that the Central Bank of Japan may raise the Benchmark Interest Rate by 25 basis points again this year. However, if Japanese consumers significantly increase consumption, the Central Bank of Japan may accelerate the pace of rate hikes. It pointed out that the Central Bank of Japan is gradually approaching a nominal policy Interest Rate of around 2%, and the most recent rate hike brought the Interest Rate to the important psychological level of 0.5%. In the long run, PGIM believes that the Central Bank of Japan considers a nominal Interest Rate of at least 1% to be appropriate. (FX678)