Market Still Bets Bank of Japan Will Hold Rates in October, Ueda Holds Off on Clear Signal

Odaily News: Bank of Japan Governor Kazuo Ueda said on Tuesday: "We will continue to raise policy rates and adjust the degree of monetary easing gradually, in line with developments in economic activity, prices, and financial conditions. We will consider the timing and pace of adjustments after assessing risks and the likelihood of our baseline economic and price scenarios materializing." Ueda's remarks came as economists widely expect the Bank of Japan to keep its current policy unchanged at its next policy meeting, which concludes on October 30.

Ueda reiterated the Bank of Japan's policy stance and economic assessment, suggesting he sees no need to overturn this market expectation, while also leaving room for a rate hike after October. Overnight index swap market pricing shows that investors see about a 12% probability of a BOJ rate hike this month; when the December meeting is taken into account, that probability rises to about 90%. (Sina Finance)