The BOJ is expected to implement a 0.25% rate hike at its meeting beginning on the 17th, and the move is considered fully priced in by the market. Some believe its impact on share prices will be limited.
The BOJ will hold a meeting beginning on the 17th to decide monetary policy and is expected to raise interest rates by 0.25% at its press conference on the 18th. Another rate hike is anticipated just 3 months after the previous one.
Shingo Ide (井出真吾) of the NLI Research Institute said the rate hike was already priced in and that concerns over a decline in share prices were limited. He said market turmoil was unlikely unless Governor Ueda (植田) adopted an extremely hawkish stance. He also said attention should be paid to the direction of policy going forward, as well as developments in pressure from the U.S. side.
With the U.S. Treasury Secretary stepping up pressure on Japan's reflationary policy, the focus will be on how clearly the BOJ can demonstrate that its decisions are made independently.