Bank of Japan rate hike incoming at the December meeting. Another two in 2025.

Nomura on Japan’s economy and the BOJ:

• Japan’s economy is expected to continue its recovery and surpass its potential starting in the second quarter of 2024.
• The newly formed Ishiba cabinet is focused on completely lifting Japan out of deflation, aligning with the Bank of Japan’s policy approach.
• Discussions on wages and prices will resume in late October when Rengo releases its basic plan for the 2025 spring wage negotiations.
• We anticipate the Bank of Japan will implement another rate hike in December 2024, followed by two more hikes in 2025.

Bank of Japan Governor Ueda

This article was written by Eamonn Sheridan at www.forexlive.com.