Invesco Strategist: BOJ May Raise Rate to 1.50% in December
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In a report dated September 21, Tomo Kinoshita, a strategist at Invesco Asset Management (Japan), forecast that the Bank of Japan (BOJ) may raise its policy rate by 25 basis points to 1.50% in December, following a recent hike to 1.25%. Kinoshita noted that despite multiple rate increases, the BOJ's quarterly corporate survey showed little deterioration in corporate financing conditions. He cited rising upside inflation risks due to higher energy prices and yen weakness, as well as the Federal Reserve's hawkish shift increasing the risk of further yen depreciation. Kinoshita expects the BOJ to implement additional rate hikes in March and July of next year, bringing the policy rate to 2.0% and concluding the current tightening cycle.
Source report
September 21 — In a recent report, Tomo Kinoshita, strategist at Invesco Asset Management (Japan), stated that following last Friday's hike of the policy rate to 1.25%, the Bank of Japan (BOJ) may further raise the policy rate to 1.50% in December.
Despite recent multiple rate hikes by the BOJ, its quarterly corporate survey showed little deterioration in corporate financing conditions. Upside inflation risks have risen due to higher energy prices and yen weakness. The Federal Reserve's hawkish shift is also increasing the risk of yen depreciation.
Kinoshita expects the BOJ to implement additional rate hikes in March and July next year, bringing rates to 2.0% and concluding the current tightening cycle.
Source
domesticNeutral / independent
Part of this Story
Bank of Japan raises rate to 1.25%, a 31-year high, as yen weakens on cautious outlook