Japan’s 10-year government bond yield climbed to 1.69%, approaching 17-year highs, as the Bank of Japan’s October Summary of Opinions indicated policymakers see the next rate hike on the horizon, closely monitoring domestic wage trends.
Markets are now weighing the possibility of a move in December or January, depending on whether corporate earnings and executive guidance provide confidence that wages will continue rising next year.
Meanwhile, a draft of Prime Minister Sanae Takaichi’s stimulus plan showed the government will urge the central bank to prioritize robust economic growth alongside stable prices.
The package, expected to be finalized on November 21, is set to include tax cuts and investment incentives targeting 17 key industries.
AloJapan.com