HSBC: The Bank of Japan is unlikely to raise interest rates

HSBC economists Frederic Neumann and Jun Takazawa said in a report that the Bank of Japan is unlikely to raise interest rates. Further rate hikes depend on several factors, including the continued rise in domestic demand and improved labor productivity growth, all of which are questionable. According to reports, there are still 32 trillion yen of unrealized gains on ETFs held by the Bank of Japan. While dealing with existing assets may take more time to consider, there are already questions about the need for further buying. HSBC expects the purchase guidance for ETFs and J-REITs to be removed from the March meeting statement.