The likelihood is increasing that the Bank of Japan will wait until March for its next interest rate hike, given growing uncertainties stemming from U.S. President-elect Donald Trump, according to a former policy board member.
"There seems to be too much uncertainty as Trump comments on various matters,” said former board member Makoto Sakurai in an interview Wednesday. "There may not be enough reasons to support a rate hike in January.”
Sakurai spoke as BOJ watchers are looking for hints on whether the rate move may take place this month or later. Sakurai saw the likelihood of a hike in March as high as 70%, as the BOJ may be better off waiting out at least the first couple of months of the new Trump administration.
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