Bank Of Japan Seen Signaling Hawkish Stance, Economist Says

A senior economist at SOMPO said markets are focused on how much guidance they can get on the future pace of interest-rate hikes and how a Middle East peace agreement may affect those expectations. According to Jin10, Masato Koike said the Bank of Japan’s stance on further rate increases is set to be a key market focus. Koike added that Bank of Japan Deputy Governor Shinichi Uchida typically avoids leaving room for interpretation, and he was unsure whether the central bank would provide much forward guidance. He said he expected the central bank to send a hawkish signal today, but added that the Bank of Japan appeared intent on avoiding statements that could be read as firm commitments, meaning it was unlikely to offer many specific clues.