Bank of Japan December Rate Hike Odds Jump to 85% After Ueda Remarks

The probability of a 25-basis-point rate increase by the Bank of Japan in December surged to 85% from 50%, while odds of holding rates steady fell to 14%, PolyBeats data show as of Dec. 2. The shift followed remarks by BOJ Governor Kazuo Ueda in Nagoya on Dec. 1, where he said the central bank would "weigh the pros and cons of raising the policy rate" at its Dec. 18-19 meeting. Ueda noted yen weakness "may push up inflation more than in the past," pivoting from his October focus on external uncertainties including U.S. trade policy risks.