The BOJ is considering an additional rate hike in September or October without waiting long after its June hike. Expectations are growing that the market is pricing in a terminal rate above 2%.
The view that the BOJ is seeking an additional rate hike in September or October without waiting long after its June hike has been reported. Sources familiar with the matter have indicated that the timing of the additional hike could be approaching.
Meanwhile, there is also a view that corporate prices are nearing a peak, in which case the impact on consumer prices is expected to be limited. The need to continue implementing measures to address inflation is being debated.
Expectations are growing in the market that the BOJ will accelerate the pace of its rate hikes, and the view that the terminal interest rate will exceed 2% remains firmly entrenched. At the same time, the market is still awaiting further updates on the flexibility of future policy management and the persistence of its effects.