ING
Bank of Japan preview: 25bp hike incoming
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https://think.ing.com/articles/boj-preview-25bp-hike-incoming/
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4 itemsEamonn Sheridan
Bank of Japan 25bp rate hike to 1%, as widely expected
ING THINK
BoJ preview: Hawkish hold
The desk anticipates a hawkish hold from the Bank of Japan (BoJ) at its upcoming meeting, following September's hike to 1.25%. The central bank's growth and inflation outlook will be pivotal, particularly if CPI forecasts for FY27 and FY28 exceed the 2% threshold, which could pave the way for further rate increases in 2027. Per the full note from ing-think, market pricing currently assigns an 80% chance of a 25bp hike in December, suggesting heightened sensitivity around the BoJ's communications this week, especially in light of arch-hawk Hajime Takata's potential dissent on voting for a back-to-back hike.
Eamonn Sheridan