Market news: The Central Bank of Japan is known to prefer 25 basis points

On 3 September, informed sources revealed that the Central Bank of Japan would prefer to raise the benchmark interest rate by 25 basis points this month in order to cope with the risk of inflation going up, while flexibility would be given in the future to adjust the rate increase in line with the economic and price situation. According to the source, central bank officials in Japan will discuss the possibility of raising the policy rate and continue to believe that inflation risks tend upwards. The rise in the price of services and the continued weakness of the yen have further enhanced the rationale for action. According to sources, the current economic development in Japan is generally in line with the previous expectations of the JCB. As the economic situation has not undergone significant changes requiring significant adjustments in policies, there is little chance of a 50-point increase. According to an informed source, this reduces the market's expectations of “a substantial increase”. Kim Xian