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5 Kommentare

  1. Tough_Oven_7890 on

    Rate hike was long due , japan does not have much options atm … the wait and watch strategy has become more riskier now

  2. Diligent_Bit3336 on

    Japan will be the first “developed country” to default in this century. This will trigger a cascade reaction that hits the US immediately afterwards. The only tool in the toolbox is crashing the value of each respective currency with drastic money printing to prevent default. However when that happens, demand for these government bonds will sink to the bottom of the ocean since they are being issued in a currency worth less than toilet paper now. Then what? I somewhat understand why Trump occasionally opines about re-denominating USD to be backed by crypto or gold. Otherwise they and especially Japan are trapped in an irreversible death spiral from decades of irresponsible monetary management.

  3. Working-Crab-2826 on

    Rate hikes will severely affect young people trying to buy a house in the country, and it will also severely harm the government itself with the amount of debt they hold. Is Japan willing to default?

    Instead of rate hikes, the weaker yen, which is a positive for exports, wouldn’t be that big of a problem if real wages were raising. Companies earn more with the weak yen-> more investment and higher wages. But of course, it’s Japan we’re talking about so companies would much rather use that money to give more bonus to the higher ups instead of paying their workers and investing.

  4. Raising from 0,5 to 0,75 will have no effect long term. Japan will need to raise the rate at least to 1.0 or 1.5.

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