The Bank of Japan’s Governor hints at a potential interest rate hike in December or January, citing wage momentum and yen movements. The central bank maintained rates at 0.5%, but raised growth forecasts. Analysts predict a rate hike in December, with more data to come by the BOJ’s December meeting.

Pressure mounts for the BOJ to act sooner, with two board members advocating for a rate hike to 0.75%. U.S. Treasury Secretary urges Japan’s new government to allow rate hikes. Analysts predict a rate hike in December, citing a solidified hawkish bloc within the BOJ policy board.

Some analysts suggest the BOJ may wait until January to raise rates, as big manufacturers finalize wage plans at the start of the year. The timing may hinge on yen movements, which could impact import costs and inflation. Core consumer inflation in Japan remains above the 2% target, despite a weaker yen.

Former BOJ executive expects a rate hike in January, depending on how companies handle tariff impacts and wage hikes. The timing could change if the yen falls sharply, potentially leading to inflation overshooting the central bank’s forecast. The possibility of a December rate hike increases with accelerated yen declines.

Read more at Yahoo Finance: Analysis-BOJ locks in near-term rate hike, yen may sway timing