Japan Nears Another Rate Hike as Inflation Approaches Target

Bank of Japan Governor Kazuo Ueda stated that underlying inflation is nearing the bank's 2% target, affirming that financial conditions remain supportive of the economy despite the interest rate hike in September.

His remarks reinforce expectations for continued monetary policy tightening, with markets anticipating a potential rate hike in December;

markets are currently pricing in a probability of approximately 64% for such a move. The timing and pace of future hikes remain contingent on inflation and economic developments.