BOJ likely to conduct multiple hikes ahead, former official says

Bank of Japan Gov. Kazuo Ueda’s policy path may include as many as four rate increases by 2027, with three more coming after a widely anticipated move next week, according to a former executive director of the central bank.

“They are probably thinking they have completely fallen behind the curve,” Hideo Hayakawa, the former official, said in an interview Wednesday. “Ueda will probably indicate that it’s not the end of the cycle even after raising the rate this time.”

Hayakawa was speaking as the central bank is broadly expected to raise borrowing costs to 0.75% on Dec. 19 in its first move since January. A primary market focus of the event will be how the bank characterizes the future policy path.