Former BOJ official says next rate hike likely in January – PM Isheba won’t stop it

Bloomberg on Bank of Japan former executive director in charge of monetary policy Eiji Maeda, who spoke in an interview Tuesday.

In summary:

“January has the highest probability … when the bank releases its latest economic projections.”

BOJ will be watching three critical developments:

• the US presidential election,
• the trend in service prices this autumn
• momentum in the run-up to next year’s annual wage talks

“These factors will be clear gradually so depending on them, the hike could come either in December or March,”

“I don’t think the new government will bind the hands of the BOJ”

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FWIW Morgan Stanley is tipping January also, a 25bp rate hike.

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