Traders Eye Bank Of Japan Decision For Watershed Rate Hike
The Fed won't be the only game in town this week.
In addition to the March FOMC meeting, policy decisions are due from the Bank of England and, more notably, the Bank of Japan, which may -- may -- raise rates for the first time since the Samurai.
It hasn't really been that long since Japan hiked, but it feels like it. If you're fresh out of college, new on Wall Street, you were in grade school for the last BoJ hike. Although Kazuo Ueda will almost surely pull the trigger over the next two meet
However, residential housing prices are just now recovering to what they were in 2001. Furthermore, population is expected to continue to decline from about 123M now to 121M in 2030 and 100M in 2050.
Can this economy, with these demographics, survive a rate increase over the longer term?
https://fred.stlouisfed.org/series/QJPN628BIS
Do we think Japanese stocks will like, or dislike, the end of negative rates?
Simplistic question, and they sure seemed to like the prospect today, but I have a hard time keeping track of all the cross currents there.