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Mohamed A. El-Erian, president at Queens' College, University of Cambridge, highlights that the Bank of Japan has raised interest rates to 1 percent, marking the highest level in 31 years.
He also notes that the central bank signaled more rate increases are likely, despite the announcement being more hawkish than market expectations. Nevertheless, the yen remained stubbornly weak following the decision.
El-Erian has previously noted that gold's share of global official reserves climbed to 27% at the end of 2025, overtaking holdings of both euros and U.S. Treasuries, according to his analysis here. He also drew attention to John Plender's warning about the rising rollover risk as U.S. public debt approaches record highs here. These recent observations come as markets respond to monetary policy shifts in major economies.