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Bank of Japan Considers December Interest Rate Hike Amid Yen Fluctuations
The Bank of Japan may raise its policy rate from 0.5% to 0.75% to address inflation and wage growth, with the decision expected at the December 18-19 meeting.
- On Monday, Bank of Japan Governor Kazuo Ueda said the BOJ will weigh whether to raise its interest rate at its Dec. 18-19 policy-setting meeting and make decisions as appropriate.
- Persistent inflation tied to yen depreciation and heightened wage expectations, alongside significantly reduced uncertainty over U.S. tariffs, have prompted the Bank of Japan to weigh a rate hike, Ueda said in Nagoya.
- Markets have priced a likely move from 0.5 to 0.75 percent, and after Ueda's remarks the yen strengthened to mid-155 while long-term Japanese government bond yields rose.
- The governor framed any hike as a measured step, noting that raising borrowing costs will be necessary to reach the 2 percent price-stability target while maintaining accommodative financial conditions as easing off the accelerator.
- Ahead of the Dec. 18-19 meeting the BOJ is actively collecting information on firms' pay hike stances as Ueda said, it's "important to confirm the momentum of initial moves toward next year's annual spring labor-management wage negotiations.
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In a speech on the 1st, Bank of Japan Governor Kazuo Ueda expressed confidence in the continuation of wage increases and suggested that an interest rate hike is imminent. Market expectations of a December interest rate hike have suddenly strengthened, accelerating the yen's appreciation, interest rates, and stock market declines. The market estimates the probability of a December interest rate hike at 8%...
·Tokyo, Japan
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BOJ to weigh whether to raise rates in Dec. on wage hike bets: chief Ueda
Bank of Japan chief Kazuo Ueda said Monday the central bank will weigh whether to raise its interest rate at its next policy meeting later this month, citing heightened expectations of robust wage hikes and "significantly reduced" uncertainty over U.S. tariffs.
·Japan
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Total News Sources15
Leaning Left3Leaning Right3Center3Last UpdatedBias Distribution34% Left, 33% Center, 33% Right
Bias Distribution
- 34% of the sources lean Left, 33% of the sources are Center, 33% of the sources lean Right
34% Left
L 34%
C 33%
R 33%
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