Institution: The Bank of Japan's interest rate hike shows that it is ready for monetary policy normalization

Odaily Odaily reports that Chris Scicluna, head of Daiwa Capital Markets Europe Research, said that the Bank of Japan's decision to raise its policy rate to 0.5% indicates the Bank of Japan's determination to guide the economy out of decades of ultra-low interest rates. While the rate hike itself was widely expected, the real significance lies in the signal from the Bank of Japan that Japan may finally be ready to normalize its monetary policy. The current policy rate is the highest since 2008, and the Bank of Japan seems to want to push it to a new high since 1995. "The Bank of Japan has embarked on a journey, and it will be tested on how far it can go without shaking the country's fragile consumption or broader financial stability," said <金十>.