Bank of Japan May Deliver Rate Increase in September

Dow Jones07-31

0806 GMT - Bank of Japan Gov. Kazuo Ueda's hawkish comments on Friday prompts Capital Economics to bring forward its forecast for the next rate hike to September from October. The central bank maintained its policy rate at 1.0%. Before the latest meeting, markets were pricing in an 80% chance of a rate hike by October, says head of Asia-Pacific Marcel Thieliant in a note. "But Ueda noted that the Bank must scrutinize upside price risks more than ever," he adds. CE maintains its long-held view that BOJ's policy rate will reach an above-consensus 2% by end-2027.

 

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