A move by the Bank of Japan to raise interest rates this month would likely come too soon after the formation of Sanae Takaichi¡¯s administration and would be better timed in December, according to one of her closest economic advisers.
¡°A rate hike in October is probably difficult in my view,¡± said Etsuro Honda, who advises Takaichi on economic policies, in an interview on Monday. ¡°It depends on the macroeconomic environment, but I don¡¯t see a problem if it¡¯s raised by 25 basis points in December.¡±
Honda¡¯s remarks suggest the likelihood of the BOJ waiting before raising its policy rate, despite earlier speculation of an October move, following Takaichi¡¯s victory in the ruling party¡¯s leadership race on Saturday.
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