Bloomberg is reporting that the Japanese central bank is seeing little cost to waiting for the next rate hike. And that some policymakers are not against a rate hike in December if it were to be proposed. The officials are said to see the next rate hike as a question of when and not if, with it only being “a matter of time”.
Besides that, they see less risk of a weaker yen pushing up inflation pressures at this stage.
The headlines here are sending USD/JPY for a bit of a spin on the day. The pair quickly dipped to a low of 150.99 before recovering by roughly 100 pips to 151.95 right after. As things stand, traders are pricing in just ~26% odds of the BOJ hiking by 25 bps next week.