Svmuu News BlackRock Ben Powell of the think tank stated that after the Bank of Japan (BOJ) raised interest rates to their highest level since 1995, the central bank is likely to proceed cautiously regarding further rate hikes.Domestically, solid wage growth, resilient core inflation, and deeply negative real interest rates support the case for tightening policy. Abroad, hopes for a de-escalation in the Middle East have eased the threat of a prolonged energy shock, which should help curb imported inflation. Nevertheless, there remains a risk that inflation could exceed the 2% target Bank of Japan (BOJ). The firm maintains an underweight position in Japanese government bonds, expecting that interest rate hikes, elevated global term premiums, and massive issuance will continue to put upward pressure on yields. Over the next 6 to 12 months, the firm is neutral on Japanese equities, as imported energy costs may continue to weigh on returns.Over the long term, the firm maintains an overweight position, as inflation and wage trends support corporate profitability. (Jin Shi)