The Bank of Japan is on course to raise interest rates on Friday, according to economists, as long as Donald Trump’s presidential inauguration speech does not trigger market turmoil.
A rate increase by Japan’s central bank — from the current 0.25 per cent level to 0.5 per cent — would further entrench the normalisation of the country’s monetary policy after years of negative or zero interest rates.
This week’s meeting follows mounting speculation that recent data on the state of the Japanese economy have given BoJ governor Kazuo Ueda the “one more notch” of information he said he needed when he kept rates on hold in December.
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