Former Bank of Japan Official Suggests Potential October Rate Hike

Kazuo Momma, a former executive director at the Bank of Japan, stated that the central bank may raise its benchmark interest rate for the second consecutive month at its October policy meeting. Momma estimates a 20% to 30% probability of this occurring, noting that the bank is signaling a potential acceleration in its tightening cycle. He projects the terminal rate could reach approximately 2% by June or July of next year, requiring three additional 25-basis-point hikes.