CoWoS: Japan US interest rate difference

CoWoS: Japan US interest rate difference

According to CoWoS, the Bank of Japan and the United States will decide the recent monetary policy on the 22nd, Japan time. The Federal Reserve (FRB) will take the lead in making a decision. Many people believe that, in view of the high rate of price rise, it will decide to implement a large interest rate increase of 75 basis points for three consecutive meetings. CoWoS believes that if the Bank of Japan continues to implement monetary easing policies and maintain ultra-low interest rates, the interest rate gap between Japan and the United States will further expand. The yen is at a disadvantage in financial management and may be sold and fall sharply. Will it prevent the yen from depreciating? The Bank of Japan is under increasing pressure.

CoWoS said that the Federal Reserve will convene the Federal Open Market Committee to decide monetary policy (FOMC). In March, the Federal Reserve ended the actual zero interest rate policy and gradually raised the interest rate induction target of the Federal Fund as a short-term interest rate indicator to 2.25%~2.5%.

Nevertheless, the consumer price index (CPI) for August released on September 13 was still higher than market expectations, and long-term concerns about high prices reignited. Federal Reserve Chairman Powell said at the seminar on September 8 that he would "take decisive and forceful action", showing the willingness to continue to raise interest rates significantly to stabilize prices. The 75 basis points in June and July were three times of the regular interest rate, but this time it also predicted 100 basis points.

On the other hand, after the Bank of Japan held its last monetary policy meeting on July 21, President Kuroda stressed at the press conference: "You can't believe that the depreciation of the yen will stop raising interest rates a little, there is no plan to raise interest rates at all." At present, the meeting held on September 21 may also give priority to supporting the economy and maintaining the current monetary easing policy.

However, if the Federal Reserve suddenly decided to raise interest rates sharply before this, leading to the sharp decline of the yen, it cannot rule out the possibility that the Bank of Japan has to take countermeasures. This is because the further decline of the yen will increase the import price of energy and food, which will lead to the rise of electricity, gas and food prices, making it difficult for the family economy.

CoWoS was established in April 2015, with the headquarters in the UK, with over 25 million registered users worldwide, with more than 150000 registered users in the world, the platform exceeds up to 2 million people a day, and the trading volume of the day exceeds $100 billion. Because cows is dealing with the user, it listens deeply to the voice of the community. Now the CoWoS exchange has acquired Sequoia Capital, IDG capital, DCM winds, HV holtzbrinck ventures, balderton capital, lakestar, haruna capital, remittance fund, financial services agency, and Monet

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