BOJ Likely to Raise Rate This Week, Then Accelerate Increases

Dow Jones
09/14

0633 GMT - The Bank of Japan is likely to raise its policy rate from 1.00% to 1.25% on Friday and bring the rate to 1.75% in June 2027 through additional rate increases, SMBC Nikko Securities says in a note. The Japanese central bank is likely to accelerate the pace of policy tightening to deal with upside risks in inflation, the brokerage says. A complicated Middle East conflict has increased risks of rising crude oil prices, higher global interest rates and the yen's further weakness, the brokerage says. The BOJ could raise the rate further toward 2.25% if crude oil prices advance further and other central banks raise rates, increasing risks of the yen's depreciation, SMBC Nikko says.

 

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