The Bank of Japan's interest rate hike in December has become a strong consensus, and the highest interest rate in 30 years is about to be realized

According to informed sources, Bank of Japan officials are prepared to raise interest rates at the policy meeting later this month, provided that the economy and financial markets do not experience significant shocks during this period. If the economic outlook is realized, the Bank of Japan will also hint at continuing rate hikes while remaining cautious about how high rates will ultimately be raised.

This rate hike will bring Japan's policy interest rate to its highest level since 1995. The key focus for the market is how actively the Bank of Japan will signal subsequent rate increases.

On the other hand, informed sources indicate that the Bank of Japan will continue to sift through the latest data and information, making the final policy decision only at the last moment. The sources stated that, given that real interest rates remain below zero and the financial environment will continue to support the economy, officials view this rate hike as an adjustment to monetary easing rather than tightening. (Jin Shi)