Weak Yen Boosts December Rate-Hike Chances, Ex-BOJ Official Says

The recent weakening of the yen is increasing the likelihood of the Bank of Japan raising its benchmark rate next month, according to a former executive director of the central bank.

“The likelihood of a rate hike in December is fairly high as long as no significant negative news emerges and the yen stays around this level,” Kazuo Momma, the former BOJ official, told Bloomberg on Tuesday with the currency around 156.80 against the dollar. “There’s really no need to wait for stronger signs from indicators like wages, prices or the economy.”