The BOJ's policy meeting will begin on the 17th, and experts are seeing a slight strengthening in the market view that rates will be raised every 3 months going forward. The meeting is being reported as likely to raise the policy rate from the 1% range to around 1.25%.
Ahead of the BOJ's 2-day Monetary Policy Meeting starting on the 17th, a rate hike is widely viewed as almost certain, and experts share the market view that rates will be raised every 3 months going forward. The market is said to be pricing in a 25-basis-point (0.25%) rate hike.
Maruyama Rinto (丸山凜途), strategist at SMBC Nikko Securities, said inflation concerns would drive rate hikes as quickly as possible, but also expressed the view that market expectations may be running slightly ahead of whether rate hikes every 3 months will be possible from the next meeting onward.
Regarding the pace of rate hikes every 3 months going forward, Maruyama Rinto (丸山凜途) said expectations were running ahead and pointed to the possibility that rate hikes would proceed while their impact on households was carefully assessed. Maruyama Rinto (丸山凜途) analyzed that the direction of the yen, whether toward depreciation or appreciation, would be determined by future US and Japanese monetary policy.