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Nakagawa expressed optimism about the Japanese economy, citing high corporate earnings as a support for a "virtuous cycle of wages and prices." Despite significant market fluctuations in early August, she assured that there has been no substantial change in the fundamentals of the Japanese economy.
The BoJ, under growing pressure to address inflationary pressures and stimulate economic growth, had earlier implemented a series of interest rate hikes. Many market participants anticipated a continued tightening cycle, expecting the central bank to sustain its aggressive monetary policy stance for an extended period. However, recent indications from the BoJ suggest that the rate hikes might not be as extensive or enduring as previously forecasted.
The Nikkei's dramatic fall follows a significant decline in U.S. stock markets and a broader downturn in major European indexes. The negative sentiment has spread across global markets, affecting South Korea, Taiwan, and Australia as well.
Thai PM meets central bank head amid calls for interest rate reduction, signaling a crucial economic policy discussion for growth amid challenges.