Via Bloomberg:
- Weak Yen Boosts December Rate-Hike Chances, Ex-BOJ Official Says (gated)
In brief:
Support inside the Bank of Japan for a near-term rate hike is clearly broadening, with several board members signalling readiness to tighten in the coming months. New board member Kazuyuki Masu, previously cautious when he joined five months ago, said last week that the timing for a hike is now “approaching.” Junko Koeda also backed further policy normalisation, though she stopped short of indicating whether December is appropriate. Even Asahi Noguchi—typically one of the most dovish voices—will speak Thursday after surprising markets with a hawkish signal in September.
Former BOJ executive Momma says these comments still remain broadly aligned with Governor Kazuo Ueda’s own stance. Ueda has deliberately kept both December and January open, and Momma argues the board will ultimately fall in line with whichever month the governor chooses. If Ueda moves in December, he expects “every board member” to follow; if Ueda prefers January, remaining holdouts will be content to wait.
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The growing chorus of hawkish BOJ voices reinforces market expectations for a move within months. But Momma’s read—that the board will follow Ueda—means traders still need to price a two-month window, keeping yen positioning jumpy until clarity emerges.
