Overview
- Minutes from the Nov. 12 economic council show Governor Kazuo Ueda warning that keeping policy too loose for too long risks derailing a stable path to the 2% inflation goal.
- The first formal Ueda–Takaichi bilateral is scheduled for 3:30 p.m. local time, following their appearance at last week’s policy panel.
- Ueda has signaled the chance of a rate hike as soon as next month, whereas Prime Minister Sanae Takaichi has expressed discomfort with near‑term tightening and urged close BOJ–government coordination.
- The yen has slid to a nine‑month low as investors sold the currency and Japanese government bonds, drawing concern from the finance minister over volatile moves.
- Many market participants expect the BOJ to lift rates to 0.75% from 0.5% in December or January, though a Takaichi adviser cautioned against a quick move after data showed a third‑quarter economic contraction.