Bank of Japan raises policy rate by 25 basis points to 1.50% at December 18/19, 2026 meeting (confirmed by BOJ press release or Bloomberg by December 19, 2026, 10:00 JST)
Markets price ~80% probability of a BOJ December hike as of October 30, 2026 (Bloomberg, Japan Times). 83% of surveyed economists expect a hike from 1.25% to 1.50%. The BOJ holds at today's October meeting as expected but sends hawkish December signals. Imported inflation pressure (JPY at 157.44) and a consistent quarterly tightening pace since 2024 underpin the forecast. Simultaneous expected Fed hike to 4.00–4.25% in December dampens JPY appreciation but does not negate the BOJ signal. Market pricing: Bloomberg implies ~80%.
77%