LOL! Japan's rate raising cycle lasts one week as markets rebel. AIA Weekly Report 8.10.24

Japan's central bank has informed the markets that it will not hike interest rates when the financial and capital markets are unstable. Japan needs to hike rates as the currency is weakening against the dollar.

However, if the carry trade is so big (estimated at $20 trillion) that a .25% rise in Japanese rates causes this much volatility, we potentially have major problems.

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