Institution: The Bank of Japan is expected to implement the largest interest rate hike in 18 years

ChainCatcher news, according to Jinshi reports, the market widely expects the Bank of Japan to raise the benchmark interest rate to 0.5% on Friday, with a 25 basis point increase being the largest since February 2007, further indicating that the Japanese economy is finally showing signs of returning to normal. The two key points that Bank of Japan Governor Kazuo Ueda proposed last month when considering interest rate hikes have become quite clear: so far, the country's wage growth momentum appears to be strong, and there has been no significant market shock in the early days of President Trump's second term.

Informed sources earlier stated that Bank of Japan officials believe there is a high likelihood of an interest rate hike on Friday, unless Trump creates too many negative surprises. While Ueda is unlikely to provide any specific interest rate path to retain his options, overly dovish statements could lead to a weakening of the yen and exacerbate inflationary pressures. This could also keep monetary authorities highly alert to the possibility of needing to intervene directly in the market.