The view has emerged that the BOJ is highly likely to continue raising rates every 3 months. December is seen as the leading candidate for the next hike, followed by March or April.
Former BOJ Executive Director Maeda Eiji (前田栄治) said the BOJ is likely to continue raising rates approximately once every 3 months to limit the risk of inflation failing to remain at its price stability target. The remarks were made in an interview.
The next rate hike is expected to take place in December, followed by another in March or April. The view was also expressed that the current pace of approximately one hike every 3 months is appropriate. This is said to be broadly consistent with market pricing.
Data from overnight index swaps indicate that some market participants estimate an approximately 80% probability of a rate hike by December. Meanwhile, the prevailing view is that the BOJ will leave rates unchanged at its next monetary policy meeting on 30 October.