- BOJ continues to support the economy with accommodative monetary policy environment
- Level of neutral rate is determined by various factors, not just demographics
- There is still some distance before crossing over to positive real interest rates
- If there is an economic shock or if various deflationary factors remain, it might be necessary to keep real interest rates in negative territory
Nothing that hasn’t really been said before. The headline remark reaffirms that they’re still on the path to keep hiking rates but they’ll be moving at their own pace on this one. As things stand, markets are seeing it more than likely that the next rate hike will only come in 2H 2025 with odds for a move as early as July seen at ~66%.
This article was written by Justin Low at www.forexlive.com. Source