The BOJ is considering accelerating the pace of rate hikes and is expected to explore an additional hike as early as September or October. While mindful of the heavy responsibility of avoiding yen depreciation and a rate shock, markets are watching closely for comments from BOJ officials from this week onward.
The BOJ has so far raised its policy rate roughly every six months, but is considering accelerating the pace of rate hikes. Reports indicate that it plans to explore an additional hike in September or October, without waiting long after the previous increase.
The discussion over the pace of rate hikes could affect judgments about price trends and the risk of falling behind in responding to inflation. Market participants are wary of renewed pressure for higher interest rates as the yen depreciates.
From this week onward, markets are expected to assess the outlook, focusing on comments from BOJ officials, and will examine information on the timing and scale of rate hikes as it emerges.