Nomura Securities Predicts Possible Three Consecutive Rate Hikes by BOJ

Bloomberg··JPUS·Read original
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Summary · why it matters

Nomura Securities predicts that in an extreme scenario of continued yen depreciation, the Bank of Japan could raise interest rates at three consecutive meetings by December. Chief FX Strategist Yujiro Goto considers a 0.25 percentage point hike at the September meeting appropriate, and suggests that if the yen moves toward 160 again, consecutive hikes in October and December are possible. The market has fully priced in a September hike and also expects an additional hike by January. The stance of Prime Minister Takaichi and the moves of the Federal Reserve will be key.

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