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Insider: The Bank of Japan may pledge to raise interest rates further at next week's policy meeting
PANews December 12th News, according to three sources, the Bank of Japan may maintain its commitment to continue raising interest rates next week, but will emphasize that the pace of further hikes will depend on how the economy responds to each increase. BOJ Governor Haruhiko Kuroda has essentially announced in advance that there will be a rate hike in December, and the market has almost fully priced in the possibility of raising rates from 0.5% to 0.75% in December. The market's focus has shifted to how much the BOJ can raise interest rates to a neutral level. Sources say that although the central bank may internally update its estimate of the policy rate relative to what is considered a neutral level, it will not use this estimate as the main communication tool for future rate hike paths due to the difficulty of making precise predictions. Instead, sources say the BOJ will explain that future rate hike decisions will be based on considerations of how past increases have affected bank lending, corporate financing conditions, and other economic activities. One source stated
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