Commentary: Japan’s Next Rate Hike Expected in December

By Kohei Okazaki

00:00

00:00/00:00

Listen to this article 1x

Kohei Okazaki, chief Japan market economist at Nomura. Photo: Nomura

Despite Bank of Japan (BOJ) Deputy Governor Shinichi Uchida’s dovish speech in early August, we expect the BOJ to hike the policy rate again in December.

In addition, we expect the central bank to hike twice more, in April and July next year.

There are three factors that would enable the BOJ to continue its monetary policy normalization process.

First, the economy should show a sound recovery, led by private consumption.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

The BOJ is expected to hike the policy rate in December, and twice more in April and July next year.
The monetary policy normalization depends on economic recovery, successful spring wage negotiations, and lower political uncertainties.
The LDP's leadership election on September 27 is crucial for maintaining investor confidence.

AI generated, for reference only

What Happened When