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Sources: Bank of Japan likely to raise interest rates in December, government to refrain from interference
Summary: According to sources cited by Reuters, three Japanese government officials have indicated that the Bank of Japan is likely to raise interest rates in December, with the government expected to tolerate this decision. The sources suggest that the central bank is preparing to increase the policy rate from 0.5% to 0.75%, in line with signals ...
According to sources cited by Reuters, three Japanese government officials have indicated that the Bank of Japan is likely to raise interest rates in December, with the government expected to tolerate this decision. The sources suggest that the central bank is preparing to increase the policy rate from 0.5% to 0.75%, in line with signals from Governor Haruhiko Kuroda in a speech on Monday. This would be the first rate hike since January. One source stated, 'If the Bank of Japan wants to raise rates this month, they should decide on their own. This is the government's position.' Kuroda mentioned on Monday that the central bank will weigh the 'pros and cons' of a rate hike this month, hinting at a high likelihood of an increase at the meeting on December 18-19. These comments have led the market to price in an 80% chance of a rate hike in December, although some market participants are watching for potential reactions from dovish Prime Minister Naoto Kan's government. Attention may shift to the central bank's wording on how far they ultimately plan to raise rates, as Kuroda remains ambiguous on this topic.
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Link: Sources: Bank of Japan likely to raise interest rates in December, government to refrain from interference [Copy]
