Former BOJ executive expects interest rate hikes every three months going forward.

October 21 - Eiji Maeda, former executive director of the Bank of Japan, stated that the BOJ may continue to raise interest rates once every three months to control the risk of inflation deviating from its price stability target. Maeda said, "I expect the next rate hike in December, and possibly another one in March or April next year. Currently, the pace of rate hikes has accelerated to about once every three months, which I think is appropriate." This judgment is also broadly in line with market expectations.

Maeda indicated that the possibility of the BOJ raising rates at consecutive monetary policy meetings in the future is not entirely ruled out, such as in the event of a sharp depreciation of the yen. However, he believes this possibility seems unlikely at present. Maeda said, "If the BOJ announces rate hikes at two consecutive meetings, the market may increasingly expect another hike at the next meeting, which would pose considerable risks. Therefore, the BOJ has reason to avoid raising rates at consecutive meetings." (Jinshi)