As the Bank of Japan considers accelerating the pace of rate hikes, the market expects the probability of a September rate hike to exceed 80%. Experts say bringing forward the hike is unavoidable.
The Bank of Japan is considering accelerating the pace of rate hikes in light of the risk of rising prices. Market participants increasingly believe that the Bank of Japan is likely to implement a rate hike in September.
Former Bank of Japan Policy Board member Noguchi Akira (野口 旭) said that the relationship between wages and prices is different from the zero-sum norm of the past and that the economy is shifting toward a world in which price pass-through is advancing. He said that bringing forward the rate hike is unavoidable.
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