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BOJ to pledge more rate hikes at next week's policy meeting, sources say
The Bank of Japan will likely maintain a pledge next week to keep raising interest rates, but stress the pace of further hikes will depend on how the economy reacts to each increase, said three sources familiar with its thinking. Markets have almost fully priced in the chance of a rate hike to 0.75 per cent from 0.5 per cent at the December 18-19 meeting, after Governor Kazuo Ueda essentially pre-announced such a move. Attention has shifted to how far the BOJ could raise rates before they reach a neutral level, which neither stimulates nor cools growth. While the central bank may internally update its estimate on how ... (full story)
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