Ahead of the Bank of Japan's policy meeting, experts see expectations of rate hikes every 3 months going forward as running slightly ahead. Attention is focused on the direction of policy changes and the market response.
The Bank of Japan's monetary policy meeting will be held over 2 days beginning on the 17th, and expectations are growing that a rate hike is almost certain. Market participants are closely watching the Bank's policy decisions going forward.
According to market expectations, the view that rates will be raised every 3 months going forward is gaining support, while experts say this pace has been priced in somewhat prematurely.
The policy direction the Bank of Japan may indicate is expected to involve continuing to raise rates while aiming to entrench underlying inflation at around 2%.
Against the backdrop of expectations that the Bank of Japan's financial conditions will remain accommodative, the timing and pace of policy changes will be the focus.