BOJ to consider rate hike in December, governor says
Bank of Japan Governor Kazuo Ueda announced that the central bank will evaluate the pros and cons of raising interest rates at its upcoming policy meeting on December 18-19, signalling the strongest prospect yet for a rate increase. Following his remarks, the Japanese yen and bond yields rose, and markets increased the likelihood of a hike to about 80%, up from 60% earlier this week.
Source Reuters
Ueda emphasized that the rate hike would not be “hitting the brakes” but rather “easing off the accelerator,” a cautious step toward normalising monetary policy. He also promised to provide more clarity regarding the distance from the neutral rate after the anticipated move to 0.75%.
This potential adjustment could shift Japan’s monetary landscape, given the long period of ultra-low rates. Should the hike be approved, it is likely to impact currency values, financial markets, and the overall economic trajectory of the country.
