Invesco: Bank of Japan may hike rates by 25 basis points in December

Invesco Asset Management (Japan) strategist Tomo Kinoshita stated in a report that the Bank of Japan could raise its policy rate to 1.50% in December, following the recent hike to 1.25%. Despite the tightening, corporate financing conditions remain stable. Rising energy costs, a weak yen, and the Federal Reserve's hawkish stance are increasing inflationary risks. Kinoshita expects further hikes in March and July of next year, potentially reaching a 2.0% terminal rate.