Institution: The Bank of Japan's interest rate hike shows that it is ready for monetary policy normalization

Odaily News Chris Scicluna, head of European research at Daiwa Capital Markets, said the Bank of Japan's decision to raise its policy rate to 0.5% shows the central bank's determination to steer the economy away from decades of ultra-low interest rates. While the rate hike itself was widely expected, the real significance lies in the signal sent by the Bank of Japan that Japan may finally be ready for monetary policy normalization. The current policy rate is the highest level since 2008, and the Bank of Japan seems to want to push it to a new high since 1995. "The Bank of Japan has embarked on a journey that will test how far it can go without shaking the country's fragile consumption or broader financial stability." (Jinshi)