A Bloomberg survey last month showed that 53% of economists forecast the BOJ to push up interest rates for the third time this year in December. But that outlook has now been thrown into doubt. Financial markets are also signalling reduced expectations of a rate hike this year.
New Japanese Prime Minister Shigeru Ishiba’s unexpected warning against raising interest rates is pushing back expectations of another central bank move this year and increasing doubts about his communications.
Ishiba triggered a sharp yen slide on Wednesday after he said Japan wasn’t ready for higher borrowing costs for the time being, in an unusually direct remark for a prime minister following his meeting with Bank of Japan Governor Kazuo Ueda.
