Global financial turmoil!The Bank of Japan s mysterious move has sparked a startling change

Mondo Finance Updated on 2024-01-28

Japan's debt crisis has attracted much attention, and the frequent operations of the Bank of Japan have triggered warnings in global financial markets. According to the 2021 report of the Ministry of Finance of Japan,

With a debt ratio of 212%, Japan** has exceeded expectations and is one of the worst among the world's major economies.

The sheer size of Japan's debt is worrying, but why hasn't it been so slow to trigger a crisis?On the one hand, since Japan has been mired in deflation for a long time, it is necessary to stimulate the economy

As a result, the Bank of Japan (BOJ) has maintained ultra-low interest rates and pursued a negative interest rate policy. Although the scale of the debt is huge, due to the extremely low domestic interest rates,

Debt mines did not erupt. However, with the Fed raising interest rates and Japan's domestic CPI rebounding, the Bank of Japan is starting to consider adjusting its monetary policy and possibly even raising interest rates.

The move has attracted global attention, because once Japan starts raising interest rates, global investors' financing needs for the yen will fall, and Japan's interest expenses will increase

It may even trigger a regional financial crisis. In addition, the Bank of Japan's interest rate hike expectations could also imply a recession in the global economy. Expert**,

A global recession is likely in 2024, and with the expected recession in the U.S. economy, next year's economy will be more bearish than positive

Therefore, we need to be prepared to deal with external risks and improve our ability to resist risks. 【Sakura Wolf Finance】Committed to exploring the truth behind the hot spots, welcome**,

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