Bank of Japan Considering December Rate Hike Amid Market Speculation

According to Jinshi Data, internal discussions at the BOJ indicate that some officials believe December may be an appropriate time for a rate hike, emphasizing that the impact of yen depreciation on inflation remains minimal. This marks a shift from the BOJ's traditionally dovish stance.Market Response and Yen MovementTraders have begun factoring in the possibility of a rate hike, resulting in sharp movements in the yen. The USD/JPY pair briefly dipped before regaining ground, reflecting the market's cautious anticipation of BOJ's policy decisions.OutlookA potential rate hike could signal a shift in Japan's monetary policy, aligning it more closely with global tightening trends. However, with only a 26% probability priced in, market sentiment remains uncertain, making the BOJ's upcoming meeting a focal point for traders and economists alike.