The Bank of Japan has “turned dovish” and has not said it will not raise interest rates. Kyoto Shimizu, editorial committee member of Kinyu Plus It’s good that they decided to raise interest rates at the end of July. Such an atmosphere may be prevalent within the Bank of Japan. Following Prime Minister Fumio Kishida (President of the Liberal Democratic Party)’s sudden announcement that he will not run in the September LDP presidential election, For details, see source 2024/8/18 Previous thread.
>>1 I guess so lol I’ve written about it a few times, but it’s unclear whether the new prime minister can weather the interest rate hike and it’s tough politically considering the elections (general election and next year’s House of Councillors election) Due to the government-BOJ accord since the second Abe administration, the current BOJ has no independence Under the new prime minister, it will be even more difficult to move towards normalizing monetary policy It will overlap with the LDP presidential election, but there might be one in September before the new prime minister is born… Politically speaking, September is difficult, but the timing is even more difficult after that…
There may be desirable trends, but there are clearly other things that should take priority, and the pretense is that they’re only allowed to do so because they’re moving in this direction, and they’re not going to touch anything directly, so doing all of this without any hesitation is like a religion, it’s “normalization.”
Why does raising interest rates cause prices to fall even though cash flow is reduced? The answer is simple: Because they cut off the bottom workers, lol.
Haruhiko Kuroda’s extraordinary easing drug addiction strategy. If he quits he’ll have withdrawal symptoms. If he continues he’ll be an addict. Either way it’s an interesting development. Watching from the sidelines.
Well, it goes without saying, but this is the height of position-taking that people who need to borrow money or who already have borrowed money will be in trouble if interest rates are raised.
Looking at the previous thread, it looks like more than half of the people are in favor of raising interest rates, so raising interest rates is the right answer.
If interest rates are raised, prices will go down. That’s true, but… I don’t think it will have an immediate effect of lowering prices. Besides, Japan is currently short of labor, so they can’t attract workers unless they raise wages. >>27 It won’t have that immediate effect. It’s not like it was in the days of the Democratic Party.
As expected of Kishida, he has changed the three major obligations of citizens from work, education, and paying taxes to investment, paying taxes, and paying taxes.
Real estate requires mortgage payments, so when interest rates go up, the first thing that gets passed on is rent. This has caused a huge increase in homelessness in both the US and the EU. You guys are heading to New Year’s temporary worker village too lol.
Even if the Bank of Japan talks about the basic trend, reflecting prices, and raising wages, it can’t be helped. They just have to look at the price itself and act accordingly. The yen is no longer needed, and there’s nothing the Bank of Japan can do about it.
The trendy “labor shortage” is the height of picky thinking, and even though there are already suspicious aspects, they are still so insistent on “normalization” and have completely reverted to the murderous path they took before Abe. They couldn’t change themselves, but they did at least criticize. Where has the opposition party from back then gone?
>>46 To be honest, nothing will change. The market is already factoring in 0.5% It’s like they’re trying to see if it will stop at 0.75% or go over 1%.
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