In this episode, NDR's Chief Economist Alejandra Grindal discusses Japan. Following the Bank of Japan's monetary policy shift to tightening, the financial markets reacted negatively. Will that prevent the BoJ from further tightening? Probably not, due to numerous factors including inflation, the Taylor rule, and yen undervaluation. In fact, Japan's target rate may rise to 1% by the end of 2025.
To view the entire episode click here: See the Signals, Episode 14