According to Jin10, Citi strategist Tomohisa Fujiki wrote in a report that market-implied expectations for a Bank of Japan rate hike are strengthening, supported by a rebound in stocks and strong inflation data. The threshold for consecutive rate hikes by the BOJ remains high, but the likelihood of continued quarterly increases has risen. Fujiki wrote, “We believe the highly volatile environment, driven in part by position adjustments, will persist in the short term.” Citi expects the BOJ to raise its policy rate to 1.50% in December, in line with market pricing, which implies a 75% probability of a 25-basis-point hike next month. Citi also expects the policy rate to rise to 1.75% in the first quarter and then to 2.00% in the third quarter.