Bank of Japan Signals Further Rate Hikes as Economists Bet on Move Before Year-End

According to Jin10, the Bank of Japan signaled on June 24 the need to further raise its benchmark rate, following last week's policy rate hike to its highest level since 1995. In meeting minutes released Wednesday, a board member stated that with core CPI inflation approaching 2% and financial conditions remaining loose, the central bank should continue raising rates to address current economic and inflation conditions. Although the minutes did not specify timing for the next increase, market expectations for a rate hike before December have strengthened. A post-meeting survey showed approximately 90% of economists predict another hike by December, with over one-third expecting October as the next adjustment window.
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