Against reports that the BOJ may accelerate the pace of rate hikes, views are spreading that inflation will reach 2%, while domestic bank lending continues to grow at a high year-on-year rate.
The year-on-year growth rate of domestic bank lending has settled at 6–7%. This has been cited as a trend since the end of large-scale monetary easing.
As views spread regarding inflation reaching 2%, reports of an acceleration in the pace of rate hikes have emerged, and there are also indications that market participants are positioning for higher interest rates.
Companies are reportedly required to review not only borrowing plans but also funding plans for personnel costs, procurement and capital investment on the assumption that interest rates will rise.
The yen is said to be under depreciation pressure, and Governor Ueda is viewed as being in a situation requiring a more comprehensive assessment than before.