BOJ Hints at More Rate Hikes, Citing "Lowest Globally" Real Rate

• Bank of Japan officials hinted at further interest rate hikes, stating Japan's real rate is "lowest globally."
• The BOJ recently raised its benchmark rate to 0.75%, a 30-year high, during its December 19 meeting.
• Board members expressed concerns over the low real rate and the yen's decline, suggesting more adjustments are needed.
• Discussions also focused on the difficulty of identifying a "neutral rate," with estimates ranging from 1% to 2.5%.
• Markets had largely anticipated the recent hike due to prior indications from Governor Kazuo Ueda.

Why It Matters: BOJ signals potential for more rate hikes, driven by low real rates and currency concerns.