New Prime Minister Shigeru Ishiba won’t impede the Bank of Japan (BOJ)’s path toward raising interest rates, with January the most likely timing for its next hike, according to a former executive director in charge of monetary policy.
"My view at the moment is that January has the highest probability,” Eiji Maeda, the former executive, said in an interview Tuesday. "That would be about a half year since the July rate hike, and that’s also when the bank releases its latest economic projections.”
Ahead of that, the BOJ will be watching three critical developments: the U.S. presidential election, the trend in service prices this autumn and momentum in the run-up to next year’s annual wage talks.
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