“BOJ preps markets for near-term hike as weak yen overshadows politics”
“….the latest hawkish BOJ signals are enough to remind markets of the dangers of assuming the bank will keep interest rates low for long.
“You have markets that believe (Takaichi) will strong-arm the Bank of Japan into keeping rates lower for longer…(but) I am of the opinion that we will still see the Bank of Japan raise rates,” said Kristina Hooper, chief market strategist at Man Group in New York… “
“BOJ preps markets for near-term hike as weak yen overshadows politics”
“….the latest hawkish BOJ signals are enough to remind markets of the dangers of assuming the bank will keep interest rates low for long.
“You have markets that believe (Takaichi) will strong-arm the Bank… pic.twitter.com/kxWKwP2sp8
— kristen shaughnessy (@kshaughnessy2) November 27, 2025
The next Bank of Japan monetary policy meeting is scheduled for December 18-19, 2025, with the interest rate decision typically announced on the 19th.
Japan needs to end its dangerous debt delusion
“Japan has long had an astronomical level of government debt. Yet government bond yields have been low for much of the past decade, which has given rise to the dangerous delusion that all this debt isn’t a problem. Japan’s recently announced fiscal stimulus, which new prime minister Sanae Takaichi hopes will differentiate her from her predecessor, is the latest manifestation of this issue.
Here’s the thing. Japan’s huge debt burden is real. Low interest rates are not. Government bond yields have been kept artificially low by the Bank of Japan, which has prevented yields from rising to market-determined levels through a combination of massive bond buying and its one-time yield curve control programme of capping rates at target levels.”