To resist the depreciation of the yen, it has evolved from a “verbal warning” into a real and fierce “exchange rate defense battle”~

The current situation is: Makoto Kanda is staring at the screen, ready to “launch a surprise attack” at any moment~
Meanwhile, Shinji Ueda is, behind the scenes, applying the final layer of poison to the “arrow” of rate hikes~
The market has already felt that mysterious force coming from the Ministry of Finance. But history shows that this kind of “buying against the trend,” if it doesn’t come with a shift in monetary policy, usually only manages to delay the pace of depreciation...
It’s like putting sandbags in front of a breached dike—the real cure is only rate hikes~
Facing imported inflation, excessive yen depreciation is driving up the prices of imported energy and food.
If the Bank of Japan (BoJ) doesn’t raise rates again in June, it will be accused of being an “accomplice” to inflation~
In the face of the nuclear-level variable of yen rate hikes, the traditional fiat currency valuation framework will become even more chaotic~
#日元干预 #Bank of Japan #加息预期 #Macroeconomics