Synopsis:
Barclays acknowledges that the Bank of Japan’s (BoJ) December meeting is now “live” following surprising inflation data and Governor Ueda’s recent remarks. While maintaining a January rate hike as their base case, Barclays highlights key factors that could influence an earlier move.
Key Points:
Conclusion:
Barclays sees a January BoJ hike as the most likely outcome but flags growing risks for a December move if inflation trends, FX dynamics, and political factors align. Governor Ueda’s recent statements underscore the BoJ’s readiness to act sooner if necessary.
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