BoJ Governor Ueda strongly hinted this week that a rate hike is imminent, with policymakers growing concerned about falling behind the inflation curve. With wage growth remaining historically strong and consumer spending showing signs of strengthening, we agree that the case for policy normalisation is increasingly compelling. Higher rates in Japan may add to concerns that capital repatriation could disrupt bond markets outside Japan, but we think they are overdone.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.