The Bank of Japan's Monetary Policy Meeting will be held over two days from the 17th, with a rate hike considered almost certain. The market is pricing in rate hikes every three months going forward, while experts view this expectation as "slightly ahead of reality."
The Bank of Japan's Monetary Policy Meeting will be held over two days from the 17th, and views were expressed that a rate hike is almost certain. Market participants are focused on the possibility that rate hikes will continue at subsequent meetings.
Maruyama Rinto (丸山凛途), a strategist at SMBC Nikko Securities, said the market had already priced in a rate hike with almost 100% certainty and that the next rate hike was almost certain to be 25 basis points (0.25%). He pointed to inflation concerns as the main factor behind the rate hike.
This view is considered likely to affect future monetary policy and market expectations for interest rates.