Reports say the Bank of Japan may raise policy rates next week

On June 13, according to Japanese media reports, the Bank of Japan may raise the policy rate from the current 0.75% to 1.0% at the monetary policy meeting held from the 15th to the 16th of this month. Kato, president of Japan's Toshiro Research Corporation, believes that raising interest rates will put pressure on the lives of small and medium-sized enterprises and ordinary Japanese families, and the impact on the yen exchange rate needs to be further observed. For a long time, the core reason for the depreciation of the yen is the large interest rate spread between Japan and the United States, and the prevalence of "yen carry trade" that uses low interest rates to finance and buy high-yield assets. However, after the news that the Bank of Japan was about to raise interest rates, the yen showed no obvious signs of appreciating. In this regard, Kato believes that the market is worried that the Bank of Japan's future interest rate hikes will be slow and lagging. (CCTV)