Former Bank of Japan Executive Director Maeda thinks market pricing for the Bank of Japan isn’t hawkish enough.
He says the BOJ is likely to raise rates in either December or January. That contrasts with market pricing at 45% for December and 73% for January. He then sees a further hike to 1% some time around summer of 2026.
The peak of the BOJ strip is at 0.91% for next July.
At the moment, the market is trying to suss out how proactive new PM Takaichi will be in leaning on the BOJ to keep rates low. At the same time, politically she is vulnerable to concerns about rising inflation.
This article was written by Adam Button at investinglive.com.