News Sharing
For sharing news, please enter the email address of you and the receiver, then press SEND button.*Mandatory Fields
Receiver*
Enter email addresses, separated by semicolon (;). E.g. a@a.com;b@b.com
Your email address*
 Content Sharing
OECD: Japan Interest Rate May Rise to 2% by End of Next Year
The Organisation for Economic Co-operation and Development (OECD) estimates that the Bank of Japan will raise interest rates to 2% by the end of next year. Even if inflation remain...
Reset
Send
The window will close in 5 seconds
OECD: Japan Interest Rate May Rise to 2% by End of Next Year
Close
Recommend
3
Positive
0
Negative
2
 
SHORT SELL
 
STOCK INFO
aacat by AASTOCKS
Open a new trading account to get 1 Intel/Gold ETF share!

The Organisation for Economic Co-operation and Development (OECD) estimates that the Bank of Japan will raise interest rates to 2% by the end of next year. Even if inflation remains at around 2%, the current rate level is still close to the lower bound of the neutral rate range. Therefore, it recommends that the central bank continue to gradually raise rates to prevent the economy from overheating.

The Bank of Japan has previously estimated that Japans nominal neutral interest rate ranges between 1.1% and 2.5%, but acknowledged significant uncertainty regarding the precise level.

Related NewsCore Inflation Rate MoM for Apr in United States is 0.4%, higher than the previous value of 0.2%. The forecast was 0.3%.
The OECD also stated that as Japan faces population ageing, rising debt servicing costs, and expected increases in spending such as national defense, it is necessary to build fiscal buffers for the government. It therefore recommends that Japan gradually raise the consumption tax, which could generate considerable fiscal revenue while causing relatively limited long-term damage to economic growth. (mn/da)

Auto-translated by AI
View Original Text
This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation.

AASTOCKS Financial News
Copyright(C) AASTOCKS.com Limited 2000. All rights reserved.
Disclaimer: AASTOCKS.com Ltd, HKEx Information Services Limited, its holding companies and/or any subsidiaries of such holding companies endeavour to ensure the accuracy and reliability of the Information provided but do not guarantee its accuracy or reliability and accept no liability (whether in tort or contract or otherwise) for any loss or damage arising from any inaccuracies or omissions.