Bank of Japan Gov. Kazuo Ueda sent the clearest hint yet that his board might increase interest rates soon, highlighting the possibility of a move at the central bank¡¯s December meeting.
The bank ¡°will consider the pros and cons of raising the policy interest rate and make decisions as appropriate¡± by examining the economy, inflation and financial markets at home and abroad, Ueda said Monday in a speech to local business leaders in Nagoya. Any hike would merely be an adjustment in the degree of easing, he added.
Traders saw about a 76% chance of a rate hike when the central bank makes its next decision on Dec. 19, according to an index of overnight swaps after Ueda spoke Monday morning. That¡¯s up from around 58% on Friday, with the likelihood rising to around 94% for a move by January.
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