Overview
- Sources say the Bank of Japan has tightened its communications to prepare markets for a potential rate increase as soon as December.
- Kazuyuki Masu said the timing for a hike is nearing and Junko Koeda argued real rates must keep rising, adding to a broader hawkish shift on the board.
- Governor Kazuo Ueda has kept both December and January in play and told lawmakers the board will discuss the feasibility and timing of a hike in coming meetings.
- A recent meeting between Prime Minister Sanae Takaichi and Ueda reduced visible political resistance, and Finance Minister Satsuki Katayama voiced no objection to further normalization.
- A Reuters poll shows a slim majority of economists expect a December 18–19 move, markets pushed the yen below 156 per dollar, and the Fed’s decision a week earlier could sway the BOJ’s timing.