The Deputy Governor of the Bank of Japan hinted that it is unlikely to raise interest rates in two consecutive meetings

ChainCatcher News, Bank of Japan Deputy Governor Shinichi Uchida hinted in a speech that the benchmark interest rate will continue to be gradually raised, which may quell speculation about an early rate hike. Uchida stated during a speech to business leaders on Wednesday: "If the economic outlook is realized, the Bank of Japan will continue to raise the policy interest rate accordingly and adjust the degree of monetary easing. In this regard, the key point of the outlook is that the central bank expects to achieve the 2% price stability target."

Uchida noted that officials will have to monitor the economy's response to each rate hike, as the central bank has raised rates three times in the past 12 months, making it difficult to accurately determine where the neutral rate lies, which is neither restrictive nor stimulative. This comment suggests that the central bank is unlikely to raise rates at two consecutive meetings, including a hike in January followed by another in March. He hinted that, based on a range of estimates, the benchmark interest rate could rise to at least 1% by the end of fiscal year 2026.