Coin World News: A research report from China International Capital Corporation states that Japan’s current “high interest rates” are basically in line with Japan’s economic and inflation fundamentals. Recently, Japan’s bond yields have risen sharply, drawing concerns from many investors. In the long run, whether interest rates are high or low needs to be assessed against the level of inflation; however, the recent pace of the interest rate increase has been somewhat “too fast.” The reasons include rising global inflation driven by Middle East geopolitical conflicts, a stance of fiscal expansion, and a stance of monetary easing. If the BOJ continues to adhere to a policy of large-scale fiscal expansion and monetary easing, Japan’s domestic economy and inflation may face a risk of stagflation. In that case, the capital markets could face the risk of “three-way losses” across stocks, bonds, and FX. Conversely, if fiscal policy remains neutral and monetary policy continues to tighten, Japanese assets may stabilize, which would be beneficial for the stability of global capital markets.