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Why the BOJ will bet small on rate hikes now to avoid a bigger shock later

Source: reuters.com

Monetary PolicyInterest Rates & YieldsInflationHousing & Real Estate
Why the BOJ will bet small on rate hikes now to avoid a bigger shock later

The article references Japan's prior 50bp policy-rate increase, which occurred during an extreme inflation and property-market boom. It notes that land beneath Tokyo's Imperial Palace was then reputedly valued above all California real estate, underscoring the scale of Japan's late-1980s asset bubble.

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