BOJ Considers December Rate Hike Amid Wage-Driven Inflation

Governor Ueda signals potential rate increase as Japan's economy shows signs of sustained inflation driven by rising wages.

Bank of Japan Governor Kazuo Ueda highlighted progress towards sustained wage-driven inflation, leaving the door open for a possible interest rate hike in December.
Ueda emphasized the need to reduce monetary stimulus in a timely manner to prevent excessive inflation acceleration.
Despite uncertainties, particularly regarding U.S. economic policies, the BOJ intends to make policy decisions based on current data and economic outlooks.
The market is closely watching the BOJ's next meeting, with a 54% chance of a quarter-point hike being priced in.
Ueda noted that rising wages and robust profits are boosting domestic consumption and capital expenditure, supporting the case for a rate increase.