It is being reported that the BOJ would want to push forward with a rate hike to end the year with the government expected to tolerate such a decision, according to the sources. As a reminder, a rate hike here would be the first since January and BOJ governor Ueda certainly alluded to that rather heavily on Monday already here.
The report cites one of the sources in saying that: “If the BOJ wants to raise rates this month, please make your own decision. That’s the government’s stance.”
Adding that Takaichi’s administration is preparing for that possibility already and will work to tolerate a December rate hike. At the balance, the source mentions that it was nearly certain that the central bank will proceed with a rate hike this month.
Well, that looks to seal the deal I guess. With the timing window starting to close in on the BOJ, this is perhaps the last time they can get an opportunity to strike. So, might as well take it. The optics would certainly look better in October but hey, better late than never.
