Invesco: BOJ May Hike to 1.50% in December, Further to 2.0% in March and July Next Year

【Invesco: BOJ May Hike to 1.50% in December, Further to 2.0% in March and July Next Year】

(1) Tomo Kinoshita, strategist at Invesco Asset Management (Japan), said in a report that after raising the policy rate to 1.25% last Friday, the Bank of Japan may further hike to 1.50% in December.

(2) Despite the BOJ's multiple recent rate hikes, its quarterly corporate survey shows little deterioration in corporate financing conditions.

(3) Upside risks to inflation have risen due to higher energy prices and a weaker yen; the Fed's hawkish shift is also increasing the risk of yen depreciation.

(4) Kinoshita expects the BOJ to hike further in March and July next year, bringing rates to 2.0%, thereby ending the current tightening cycle.