TOKYO, Dec 4 (Reuters) – The Bank of Japan is likely to raise interest rates in December with the government expected to tolerate such \u200ba decision, three government sources familiar with the deliberations said.<\/p>\n
The BOJ looks \u200cset to proceed with a hike in its policy rate to 0.75% from 0.5%, which was flagged \u200cby Governor Kazuo Ueda in a speech on Monday, the sources said. It would be the first hike since January.<\/p>\n<\/p>\n
“If the BOJ wants to raise rates this month, please make your own decision. That’s the government’s stance,” said one of the sources, adding \u2060it was nearly certain the \u200cbank will proceed with a hike this month.<\/p>\n
The administration is prepared to tolerate a December hike, another source said. The sources \u200dspoke on condition of anonymity as they were not authorised to speak publicly.<\/p>\n
Ueda said on Monday the BOJ will consider the “pros and cons” of raising rates this month, signaling a strong \u200bchance of a hike at the December 18-19 meeting.<\/p>\n
The remarks led the market \u200cto price in a roughly 80% chance of a December rate hike, though some market players focused on how the administration of dovish Prime Minister Sanae Takaichi could react.<\/p>\n
Finance Minister Satsuki Katayama said on Tuesday she saw no gap between the government and the BOJ on their assessment of the economy, when asked about Ueda’s \u2060remarks.<\/p>\n
Even reflationist aides of Takaichi have not expressed \u200bopposition, including government panel member Toshihiro Nagahama who \u200btold Reuters on Wednesday the premier may accept a December hike if the yen stayed weak.<\/p>\n
The BOJ’s board is expected to make \u200da final decision after \u2060scrutinising upcoming data on domestic wage developments, the U.S. Federal Reserve’s policy decision next week and its impact on financial markets.<\/p>\n
The market’s focus will likely \u2060shift to the central bank’s messaging on how far it will eventually raise interest rates, a \u200ctopic Ueda remains ambiguous about.<\/p>\n
(Reporting by Takaya Yamaguchi, Makiko Yamazaki, Leika Kihara \u200cand Kentaro Sugiyama; Editing by Edwina Gibbs)<\/p>\n","protected":false},"excerpt":{"rendered":"TOKYO, Dec 4 (Reuters) – The Bank of Japan is likely to raise interest rates in December with…\n","protected":false},"author":2,"featured_media":324770,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[18230,17416,45,49,48,46,893,143609,9316,54810,71246,19942],"class_list":["post-324769","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-bank-of-japan","tag-boj","tag-business","tag-ca","tag-canada","tag-economy","tag-government","tag-government-sources","tag-interest-rates","tag-kazuo-ueda","tag-sanae-takaichi","tag-the-government"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/324769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=324769"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/324769\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/324770"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=324769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=324769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=324769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}