Institution: Bank of Japan's interest rate hike indicates readiness for monetary policy normalization

Odaily Daily News - Chris Scicluna, Head of European Research at Daiwa Capital Markets, stated that the Bank of Japan's decision to raise its policy rate to 0.5% demonstrates its determination to guide the economy away from decades of ultra-low interest rates. Although the interest rate hike itself is widely expected, the real significance lies in the Bank of Japan sending a signal that Japan may finally be prepared for monetary policy normalization. The current policy interest rate is at its highest level since 2008, and the Bank of Japan seems to want to push it up to a new high since 1995. The Bank of Japan has embarked on a journey that will test how far it can go without shaking the country's fragile consumption or broader financial stability