BOJ Summary Suggests Low Chance of Back-to-Back Rate Hike
Dow Jones
Yesterday
0709 GMT - The Bank of Japan's summary of opinions from its September meeting didn't reveal comments hawkish enough to support the option of a back-to-back interest-rate hike, as some investors expect, says SMBC Nikko Securities economist Yoshimasa Maruyama. "Regarding financial conditions--a key factor in determining rate hikes--there were opinions emphasizing corporate behavior and asset prices, suggesting the central bank could decide on additional rate increases without relying heavily on benchmark interest-rate levels," he says. The Overnight Index Swaps market is currently pricing in a 20% chance of a rate hike in October and an 82% probability in December.
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