Japan's Central Bank Faces Critical Decision as Debt-Currency Loop Intensifies
Japan's economic tightrope walk is getting more precarious. The nation's massive public debt makes interest rate hikes nearly impossible, while the Bank of Japan's tight grip on bond yields continues to weaken the yen beyond sustainable levels.
JP Morgan analysts now predict the BoJ might be forced to raise rates earlier than expected, possibly by early 2025. Strong wage growth and persistent currency weakness are pushing inflation projections higher than previously anticipated.
I guess Fed swaplines are already in place....
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