The Bank of Japan is deeply entrenched in the "post-election aftermath": political deadlock vs. soaring inflation. Political shackles hinder the path of interest rate hikes.
According to the Securities Times app, the results of the Japanese general election may put the Bank of Japan in a dilemma: the expectations of large-scale fiscal spending may keep inflation high, while the political deadlock may continue, and the lingering clouds of global trade wars may force the central bank to slow down its rate hike measures. Some analysts pointed out that the persistent political uncertainty may weaken the yen exchange rate, increase import costs, further exacerbate price pressures, conflicting with the Bank of Japan's current stance of "waiting for political turbulence to settle before taking action."
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