BOJ Expected to Deliver Hawkish Rate Hike in September

DBS Group Research analysts Taimur Baig and Chang Wei Liang are predicting a hawkish hike from the Bank of Japan (BoJ) at its upcoming meeting on September 17-18.

The BoJ is expected to raise rates by 25 basis points, with solid Gross Domestic Product growth, stronger wages, and inflation near the 2% target cited as key reasons for this decision.

According to Baig and Liang, a hawkish tone from the BoJ should be expected, but they rule out an outsized 50 basis point hike or back-to-back rate hikes at every meeting as their base case.