‼️The Bank of Japan is expected to hike rates next week
It seems the BoJ will raise rates for the third time this economic cycle
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The market is pricing a ~90% chance of the Bank of Japan’s rate hike at its January 23-24 meeting.
Market even showed on Friday as much as a 99% probability of a raise.
Probability has risen two-fold over the last week.
This comes after Bank of Japan Governor Kazuo Ueda strengthened expectations for a potential hike emphasizing on Wednesday that Japan's wage and economic outlook is positive.
Importantly, Japanese workers’ base salaries increased 2.7% year-over-year in November, the largest surge in 32 years.
Inflation rate in Japan has also risen as it was highlighted in the below article.
If the BoJ hikes again that would be a third raise after rates two hikes in 2024 from -0.10% to 0.25%.
Can the market handle higher rates in Japan?
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And so it begins. Will this be more than just a burp in the market? 30% correction?