BOJ October Meeting Focuses on Rate Vote, Political Pressure

0600 GMT - Th focus for the BOJ's October meeting will be not only on whether interest rates are raised, but also on the voting behavior of reflationist board members and the attendance of the economy minister, says Daiwa Securities strategist Kenta Tadaide. At the September meeting, board members Toichiro Asada and Ayano Sato dissented from the rate hike to 1.25%. "Whether their votes reflected political intentions is uncertain, but for investors, even the potential perception of such influence is what matters most," he says. While wide U.S.-Japan rate differentials remain a driver of yen weakness for now, a self-limiting feedback loop is forming: further yen weakness will raise the need for rate hikes, accompanied by stronger verbal warnings against yen depreciation from Japanese and U.S. authorities, he adds. The dollar is last at 157.75 yen.