State Street Sees BOJ Rate Hike Possible in September or October

The Bank of Japan could raise its benchmark interest rate in September or October, earlier than markets expect, State Street Global Advisors said.

Bloomingbit reported on July 31 that State Street strategist Masahiko Loo sees the BOJ's next rate increase coming in September or October, rather than six months from now as the market expects.

Loo also expects the BOJ to gradually lift its terminal policy rate to 1.5% to 1.75%.

Earlier, BOJ Governor Kazuo Ueda said the possibility that inflation could exceed the central bank's target cannot be ignored. He added that the BOJ could accelerate the pace of rate hikes if it judges financial conditions to be excessively accommodative.