Japan’s Difficult Return Back To Normal

The Bank of Japan is widely expected to raise its key interest rate by 25 basis points this week following June’s hike to 1.00%. William likens the surrounding circumstances to a minefield. With the economy fragile, the stakes of tightening too fast are high, warn the BOJ’s doves. But the US is exerting fierce pressure to tighten faster, buoying the yen, and the BOJ’s hawks want higher rates ASAP after the decades of ultra-low interest rates that have enervated Japan’s economy. … Also: Toby observes that analysts have been raising their earnings sights for Japanese companies even as investors have been devaluing Japanese stocks. It’s a market repricing risk, not earnings strength.