The optimistic assessment of economic prospects by the managers of the branch of the Central Bank of Japan reinforced the reasons for the increase

On 9 July, the report of the Governor of the Central Bank of Japan at Thursday's meeting showed that Japan's economy as a whole remained robust despite adverse factors such as tensions in the Middle East, rising oil prices and weak yen. According to the Central Bank of Japan, the disruption of logistics and shortages of raw materials due to geopolitical risks have put pressure on exports and production. It added that the risk of a sharp economic downturn had been reduced as a result of the promotion of alternative procurement programmes and the re-routing of transport routes. This may reinforce the expectations of the market for further interest rates in the short term. The overnight index swap market currently prices suggest that the market expects at least one interest rate hike by the end of this year。