Bank Of Japan Likely To Delay Further Interest Rate Hikes Until 2025, Ex-Official Predicts
https://www.benzinga.com/markets/cryptocurrency/24/08/40310031/bank-of-japan-likely-to-delay-further-interest-rate-hikes-until-2024-ex-official-predicts
Posted by JPMorgansStache
15 Comments
If trump wins the election, Japan will start to hike the rate since he doesn’t like lower currency in other countries and then the usd will go down to export more
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he says she says, no one knows
but what’s clear is that Japan is careful about the rates, and they also don’t like their stock market crashing.
They literally cancelled the rate hike when they saw the markets crashing.
I cannot believe people didn’t talk about that enough. It might have been a big reason why the crash only lasted 2 days.
Looks like dolphin and whale are back on the menu boys!
They already messed up. Never should’ve allow such astronomical carry trade on its currency. Fed rate cut is coming, and Yen will appreciate blowing up more carry trade. This respite is just delaying inevitable pain. US Fed has to cut because the interest income is expanding monetary supply and inflation, and debt burden is unsustainable.
Raising was pointless to begin with. Any moves the BOJ make is minuscule compared to the Federal Reserves. No point raising rates like 0.15% when the US can cut 0.5 to 1% this year.
Why does anyone believe this BS. You make money on the Carry trade so long as the the rates are spread wide enough and the currency rates do not move against your favor. When the yen went from 160 to 143 in a matter of days, a lot of hedgies got crushed. The Japanese treasury spent an estimated 22 and 8 billion (USD) to so called stabilize the currency. That was their biggest mistake, and not this miniscule rate increase.
The hedgies had to raise yen fast, so their japanese stock portfolio was sold off. The Nikkei went in a free fall where all the CB around the world had to prop up the world markets. It takes a lot of towels to mop up a 20 trillion yen carry trade.
That’s my take. Does anyone think otherwise?
Yes! Fljh will thrive again
Predictions mean nothing these days
Some rich people threatened them.
Wait what future interest rate hikes? 🫤
So should we buy now or leverage against it?
I personally think once US rate cuts come they will sneak in a few hikes in japan
i think Japan was just the canary. we have a lot of problems right now and the markets are telling you we’re in a risk-off regime.
only WSB regards seem to have 100% equity exposure right now. everyone else is something like 30% with the rest in US gov bonds/cash. i don’t see the whole market but i can tell you a lot of fund managers with clients in the $5-20M range are very much in risk-off mode right now.
they all want to pile back in, but aren’t.
oh yeah, they all knew things were going to shit back in June. i shoulda talked to them BEFORE buying INTC.
well it was only $70k and not $700k 🙂
You’re god dam right they will.
They’ll adjust their national funds rate when their Uncle Sam tells them they can. Cucked by America.
It’s gotta start pissing them off at some point.