Bank of Japan Said to Lean Against Consecutive Rate Hike in October

October 13 — People familiar with the matter revealed that Bank of Japan officials are inclined not to implement a rare consecutive rate hike this month, but still keep open the possibility of taking rate hike action as early as December. With no signs that upside inflation risks will suddenly rise, BOJ officials see no need for consecutive rate hikes. The central bank will carefully scrutinize economic data to assess whether a new round of rate hikes can be initiated at the December meeting.

The people familiar with the matter also said that the final policy decision at the October 30 meeting still remains uncertain until the last moment. To manage upside inflation risks, the policy committee of Governor Kazuo Ueda raised the interest rate to 1.25% last month. This followed pressure from U.S. Treasury Secretary Scott Bessent for Japan to continue advancing policy normalization to help strengthen the yen.