Particle.news
Download on the App Store
13 ARTICLES
·
2d ago

BOJ Warns of Overheating as Takaichi Plans Big Stimulus, Analysts See December Hike

Most economists still expect borrowing costs to reach 0.75% by March.

Japanese national flag hoisted atop of the Bank of Japan headquarters building is seen between traffic signals in Tokyo, Japan January 23, 2025. REUTERS/Issei Kato/File Photo
The Japanese national flag waves at the Bank of Japan building in Tokyo, Japan March 18, 2024. REUTERS/Kim Kyung-Hoon/File Photo
Men walk past an electric board displaying Nikkei and other countries' indexes outside a brokerage in Tokyo, Japan January 16, 2023. REUTERS/Kim Kyung-Hoon/File Photo
Japan's new Prime Minister Sanae Takaichi speaks during a press conference at the prime minister's office in Tokyo, Japan, Tuesday, Oct. 21, 2025. Eugene Hoshiko/Pool via REUTERS

Overview

  • The Bank of Japan’s financial system report flagged early signs of stock-market overheating and highlighted risks from hedge fund leverage and U.S. trade policy uncertainty.
  • Former BOJ executive Eiji Maeda said rates are likely to rise in December or January, arguing fiscal support will cushion growth and that a slow pace of tightening has fed a weak yen and property gains.
  • Maeda expects a move to 0.75% next, with a possible follow-up hike to 1% by next summer as the BOJ approaches its estimated neutral range.
  • Prime Minister Sanae Takaichi is preparing a stimulus package exceeding 13.9 trillion yen focused on inflation relief, investment in AI and semiconductors, and national security, according to government sources.
  • A Reuters poll taken Oct. 14–20 found 60% of economists see a Q4 hike and 96% expect at least 25 basis points by end‑March, while markets turned higher on the stimulus report and the yen pared gains; BOJ meetings are set for Oct. 29–30 and Dec. 18–19.