Bank of Japan Gov. Kazuo Ueda sent the clearest hint yet that his board might increase interest rates soon, highlighting the possibility of a move at the central bank’s December meeting.
The bank “will consider the pros and cons of raising the policy interest rate and make decisions as appropriate” by examining the economy, inflation and financial markets at home and abroad, Ueda said Monday in a speech to local business leaders in Nagoya. Any hike would merely be an adjustment in the degree of easing, he added.
Traders saw about a 76% chance of a rate hike when the central bank makes its next decision on Dec. 19, according to an index of overnight swaps after Ueda spoke Monday morning. That’s up from around 58% on Friday, with the likelihood rising to around 94% for a move by January.