Central Banks
BOJ Likely to Hike in October After Big Shift, Ex-Official Says
- Kazuo Momma now sees scope for quarterly rate increases
- Central bank’s reaction function has changed, he adds
Kazuo Momma
Photographer: Shoko Takayasu/BloombergThis article is for subscribers only.
The Bank of Japan’s big policy shift this week makes another interest rate hike highly likely in October and raises the potential for quarterly increases, according to a former executive director in charge of monetary policy.
“The chances are very high for an October rate hike,” Kazuo Momma, the former director, told Bloomberg on Thursday. “The BOJ’s policy reaction function has changed now. This means of course that there’s also a chance of another hike in January.”