Market Analysis: The Bank of Japan may raise interest rates by another 25 basis points this year

ChainCatcher news, PGIM Fixed Income stated in a report that the Bank of Japan may raise the benchmark interest rate by another 25 basis points this year. However, if Japanese consumers significantly increase their spending, the Bank of Japan may accelerate the pace of rate hikes. It noted that the Bank of Japan is approaching a nominal policy interest rate of around 2% through gradual rate increases, with the most recent hike raising the rate to the important psychological level of 0.5%. In the long term, PGIM believes that the Bank of Japan considers at least a nominal interest rate of 1% to be appropriate.