Svmuu News: Deutsche Securities believes that the Bank of Japan (BOJ) (ECB) is at a “critical crossroads in its communication” and must decide whether to maintain its current forward guidance or adjust its description of the degree of monetary easing. If Bank of Japan (BOJ) continues to use its current wording, it will face a new challenge should interest rates be raised to 1.25% in the future: how to provide a reasonable justification for further rate hikes.Since the lower bound of the nominal neutral interest rate range calculated by Bank of Japan (BOJ) is approximately 1.1%, and the current policy rate of 1% is already very close to this level, it would be difficult to continue describing monetary policy as accommodative if rates rise further above 1.1%. (Jin Shi)