With the Bank of Japan's monetary policy meeting beginning on the 17th, the likelihood of another rate hike has increased amid views that the risk of rising prices remains persistent. There are emerging views that this rate hike would be an “unprecedented” decision, marking the first such move since 1990.
The Bank of Japan will hold a meeting beginning on the 17th to decide on monetary policy, and another rate hike is under discussion roughly 3 months after the previous one. The move is seen as different from past policy in that it would raise interest rates over a short period, but the Bank is at a stage where it must assess economic conditions and price trends.
The persistent risk of rising prices is cited as a factor behind the move. There are views that higher crude oil prices against the backdrop of the situation in the Middle East and the impact of demand for AI are contributing to global inflation.
Market participants believe that yen depreciation will also be a factor in future policy management. Following the yen's decline after the US rate hike decision, some have pointed to the growing need for the Bank of Japan to raise rates at an appropriate time.
Maruyama Rinto (丸山凜途), strategist at SMBC Nikko Securities, has expressed the view that delays in Bank of Japan rate hikes would intensify inflationary pressure, calling for timely and appropriate rate increases.