According to Odaily Planet Daily, Masamichi Adachi, chief Japan economist at UBS Global Research, stated in a commentary that a Bank of Japan interest rate hike in the coming months appears warranted. He stated that Japan's negative real interest rates create a very loose financial environment. Inflation dynamics appear to support the view that the central bank should reduce its accommodative policy, citing the expectation that long-term inflation expectations will continue to rise toward 2.0%. He also expects the government to pursue fiscal expansion, which could mean higher inflationary pressure. UBS expects the Bank of Japan to raise its policy rate by 25 basis points in January, but does not rule out a December rate hike. (Jinshi)