BOJ Governor Ueda (植田) said the matter would be discussed, including at the next meeting, leaving the possibility of a rate hike open. With markets viewing a September rate hike as almost certain, the focus is expected to shift to the pace of rate hikes. The Monetary Policy Meeting will be held on the 17th and 18th of this month.
BOJ Governor Ueda Kazuo (植田 和男) indicated that the Bank would discuss raising the policy rate, saying that the matter would be considered including at the next meeting. This suggests that a formal rate hike is now potentially under consideration. The governor emphasized that the Bank would assess economic activity, prices and financial conditions and thoroughly discuss them at future monetary policy meetings.
The BOJ plans to hold a Monetary Policy Meeting from the 17th to the 18th of this month, and the meeting is expected to consider whether to raise rates. Market participants have already priced in a September rate hike, shifting the focus to how quickly the pace of rate hikes could accelerate.
Markets view a rate hike at the BOJ’s September meeting as almost certain, and market participants are focused on when interest rates will be changed. Although no specific timing for an official rate hike has been determined at this point, the governor’s comments have been taken as indicating that the Bank will continue discussing its policy stance.
Looking ahead, the pace of rate hikes and whether they should continue may be reassessed depending on developments in domestic and overseas economic conditions and price trends. Market attention is likely to focus on the decision at the next meeting and the accumulation of information leading up to it.