Yesterday, European Central Bank cut rates by 0.25%, and the president of the European Central Bank is even suggesting that it will likely be cut by 0.25% again next month.
Next week, the US FOMC will meet, and it is clear that interest rates will be cut down but opinions are still divided on the extent. As of today, the possibility of a 0.5% rate cut is increasing, with a probability of about 43%.
The one to watch is Japan again this time.
Mr. Naoki Tamura, a director at the Bank of Japan, insists that Japan’s base interest rate should be raised to at least 1% in the first half of next year. Mr. Tamura also added that rates should not be raised suddenly and drastically, but rather gradually.
In the end, they are saying that they will start raising interest rates within this year. US is known to have invested the most in yen-carry capital. US is saying that they will lower rates, but Japan is constantly mentioning the possibility of raising…