Evgeny Gromov
The “real” policy rate is massively negative, with the new policy rate of 0.25% far below Core CPI of 2.6%.
At its meeting today, the Bank of Japan raised its policy rate, the “uncollateralized overnight call rate,” by about 25 basis
BoJ Hikes By 25 Bps And Starts QT: Too Little Too Late, But In Right Direction To Prop Up The Plunging Yen
Summary
- The “real” policy rate is massively negative, with the new policy rate of 0.25% far below Core CPI of 2.6%.
- When QT reaches about ¥3 trillion per month in 2026, it would represent a reduction of its JGB holdings of about 0.5% per month.
- When QT entered full speed in September 2022, the Fed rolled off about 1.1% of its Treasury holdings per month.
Wolf Richter is the analyst at, and the publisher of, WOLF STREET, where he discusses business, finance, and money. Core focus: Federal Reserve, credits, equities, residential and commercial real estate, the auto industry, trade, consumers, and energy. He started this operation in 2011. Prior to that, he worked for 20 years in C-level positions, including 10 years in the auto industry. MBA from the University of Texas at Austin.