0701 GMT - The Bank of Japan has a favorable window to hike rates through next spring, says Mitsubishi UFJ Morgan Stanley Securities strategist Naomi Muguruma. As the Federal Reserve and the European Central Bank have resumed rate hikes amid higher oil prices, it will likely be easier for markets to digest the BOJ's monetary tightening than when foreign central banks are cutting rates, she says. Consumer price growth is also expected to accelerate in the second half of the fiscal year ending March 2027, she adds. The Overnight Index Swaps market is pricing in more than an 80% chance of a December hike.