Institution: Bank of Japan's Latest Forecast Shows Room for Further Rate Hikes

Odaily According to new estimates by the Bank of Japan on the country's natural interest rate, the central bank still has significant room to raise interest rates. The new data suggests that the neutral interest rate could be between 1.1% and 2.5%, while the bank's current policy rate is 0.75%. In its report on Friday, the bank stated that many of the indicators used in the latest estimates show a gradual rise in interest rates. This implies that the upper limit of the neutral rate may be further increased, thereby providing greater room for the Bank of Japan to implement further rate hikes. (Jin10)