Will BOJ Rate Hike to 1% Be Tipping Point, Or Just A Step In Gradual Normalization?

Impact On Bank Lending Rates, JGBs, And Yen/Dollar

Source: Bank of Japan

Key Points:

• Some observers see a hike in the BOJ policy rate to 1% as a tipping point in financial markets

• Others see it as another step in Japan’s gradual normalization of rates

• I’m in the latter camp

• I’ll examine the impact of bank lending rates, Japan Government Bonds, and the Currency Markets

• Also, a look at the potential impact on the dollar and US interest rates

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