BOJ’s Next Hike Likely in October at Earliest, Ex-Official Says

-- The Bank of Japan will probably take its time before raising interest rates again, with October likely being the earliest it might move next, according to a former BOJ official renowned as one of the nation’s leading inflation experts.Investors Spoiled for Choice With Top Ice Cream Makers for Sale

“I thought, what’s going on here? It’s not data dependent at all,” Watanabe said. “There must have been some important reasons to hurry,” he said, adding that a weak yen was unlikely the catalyst, as the bank could send hawkish signals to quell pressures on the yen if it wanted to do so. That makes the month of October, when the bank releases an updated quarterly inflation outlook, the ideal potential timeframe for any follow-up hike, he said.

While there is a debate on the extent to which the BOJ should cull its ¥600 trillion of bond holdings, Watanabe said authorities don’t need to get all the way back to the values that preceded the massive easing program that began in 2013.

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