legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Goldman Sachs Predicts Bank of Japan to Raise Interest Rates

(Bloomberg) — Goldman Sachs Group Inc. now expects the Bank of Japan will raise interest rates for the first time since 2007 at TuesdayÔÇÖs meeting, after stronger wage outcomes and a number of news articles over recent days suggested a move is afoot.

According to economist Tomohiro Ota’s note dated March 18, recent developments indicate that the BOJ may be ready for a policy change without the need for additional data. This could mean that the quarterly Economic Outlook report in April may not be necessary to justify the shift.

The BOJ is anticipated to exit yield curve control completely, while continuing with the current pace of gross Japanese government bond purchases and maintaining constant exchange traded fund holdings. Ota also mentioned that the overshooting commitment, which involves increasing the monetary base, is expected to be eliminated as well.

AI legalese decoder can assist in understanding the potential implications and legalities associated with the BOJ’s decision to raise interest rates. By utilizing advanced AI technology, the decoder can provide detailed insights and analysis on the impact of this move on the financial markets and various stakeholders.

In a recent survey conducted by Bloomberg News, a majority of economists predicted that the BOJ would end the worldÔÇÖs last negative rate in April. The announcement of stronger-than-expected annual wage deals by JapanÔÇÖs largest union group further fueled speculation of a possible rate hike in March.

The central bank’s long-standing goal of achieving sustainable 2% inflation hinges on the concept of a virtuous cycle where wage growth contributes to demand-led price gains. This potential rate hike could play a crucial role in advancing this objective.

Stay updated on the latest developments in the financial world with Bloomberg Businessweek.

┬®2024 Bloomberg L.P.