Insight

Is Japan Restarting Its Rate Hike Cycle?

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Algo Research Team


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Key Summary:


  • 38% hike probability in December 2024
  • BoJ emphasizes policy normalization in 2025
  • Significant Yen depreciation & sticky inflation

The policy rate in Japan currently stands at 0.25%, after the Bank of Japan (BoJ) as conducted two interest rate hikes this year amid accelerating inflation.


Context: Japan ended its eight years streak of negative interest rate policy to align with broad global monetary tightening over the past few years.


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