TOKYO, Sept 7 (Reuters) – The Bank of Japan is likely to raise interest rates in September and keep hiking at a pace of once every \u200cquarter until January next year, Takuji Aida, an economic adviser to Prime \u200cMinister Sanae Takaichi said on Monday. <\/p>\n
Aida, a reflationist seen as among the most vocal opponents of BOJ rate \u200bhikes, said he was pushing forward his forecast of the next increase from January 2027, as September provided a narrow window of opportunity for a hike before an extraordinary session of parliament convenes in early October. <\/p>\n
Parliament will debate, among other bills, legislation for Takaichi’s plan \u200cto suspend for two years \u2060an 8% levy on food items. <\/p>\n
After the September rate hike, the BOJ will likely follow up with another increase by January next year, \u2060Aida said in a research note. “After that, the BOJ will revert to a hike of around once every six months.” <\/p>\n
“The premature, accelerated pace of rate hikes would weigh on the \u200beconomy,” said \u200bAida, chief Japan economist at Credit Agricole. <\/p>\n
The remarks \u200bby Aida, who is a member \u200cof the government’s key economic panel, suggest broadening consensus within dovish premier Takaichi’s administration of the need for further BOJ rate hikes that could help arrest unwelcome yen falls. <\/p>\n
Markets have nearly fully priced in the chance the BOJ will raise its policy rate by 25 basis points to 1.25% at its next policy meeting on September 17 \u200cand 18. <\/p>\n
Prospects of a September rate hike heightened as \u200bU.S. Treasury Secretary Scott Bessent continued to call \u200bfor higher BOJ rates last week, \u200bwhen he voiced strong support for “decisive” monetary steps to combat yen \u200cweakness. <\/p>\n
BOJ Governor Kazuo Ueda said last week \u200bthe BOJ will debate \u200braising rates including in September with a focus on whether inflationary risks were heightening, signalling a strong chance of a hike this month. <\/p>\n
When asked about Bessent’s \u200bremarks on the BOJ, Finance \u200cMinister Satsuki Katayama has repeated that monetary policy decisions were the responsibility of \u200bthe central bank. Takaichi has not made comments on monetary policy recently. <\/p>\n
(Reporting \u200bby Leika Kihara; Editing by Sam Holmes) <\/p>\n","protected":false},"excerpt":{"rendered":"TOKYO, Sept 7 (Reuters) – The Bank of Japan is likely to raise interest rates in September and…\n","protected":false},"author":2,"featured_media":87156,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[55125,1713,191,189,188,190,29163,53156],"class_list":["post-87155","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-aida","tag-boj","tag-economy","tag-economy-of-japan","tag-japans-economy","tag-japanese-economy","tag-september","tag-the-bank-of-japan"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/87155","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/comments?post=87155"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/87155\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media\/87156"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media?parent=87155"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/categories?post=87155"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/tags?post=87155"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}