Institution: The Bank of Japan is expected to raise interest rates to 1% at the June meeting

Golden Financial reports that on April 23rd, MFS Investment Management analyst Carl Ang stated that the Bank of Japan is expected to raise its policy interest rate from the current 0.75% to 1% in June, then continue to raise the rate every six months until reaching a terminal rate of 1.75%. Ang said that Japan’s new consumer inflation indicator shows that the underlying price growth is only slightly below the bank’s 2% target, which can be used as a basis for further rate hikes. The analyst also pointed out that the recent output gap has been revised from negative to positive, indicating that Japan’s economic operating level has exceeded its potential. (Jin10)