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2025-12-17 15:33:46
[Economists: Bank of Japan May Begin a Cycle of Rate Hikes at Approximately Every Six Months] 1. Many economists and market participants expect the Bank of Japan to begin a cycle of rate hikes at approximately every six months. JPMorgan economist Ayako Fujita agrees with this outlook, but she also emphasizes that the actual pace will depend in part on the government's macroeconomic stance. 2. Fujita points out that the market remains skeptical about the Bank of Japan's ability to advance monetary normalization without policy friction with the government. One possible scenario is that the continued depreciation of the yen will continue to be a reason supporting rate hikes by the Bank of Japan, a logic that may persist into next year. She states that how Bank of Japan Governor Kazuo Ueda responds to and addresses market concerns about "central bank-government policy coordination" at the upcoming meeting will also be a key point to watch.
