The minutes of the Bank of Japan’s September meeting were released, and calls for an additional rate hike have been reported. The minutes also included the view that interest-rate normalisation would be appropriate.
The minutes of the Bank of Japan’s September meeting were released, with reports indicating that some policymakers were in favour of considering an additional rate hike. While the minutes noted concerns that the current low-interest-rate environment could persist, they also expressed the view that, against the backdrop of a sustained economic recovery, a shift towards interest-rate normalisation was becoming increasingly realistic.
Market attention remains focused on discussions over whether and when to pursue interest-rate normalisation, and the subsequent course of those discussions is expected to be a key point of focus. The release of the minutes is considered likely to have some impact on interest-rate expectations.