BOJ: Market focus returns to rate path – MUFG

Following the election, Teppei Ino from MUFG argues that market attention is likely to rotate back to Bank of Japan policy. The January Summary of Opinions signaled openness to earlier rate hikes, while upcoming remarks by hawkish Board member Naoki Tamura and the nomination to replace Asahi Noguchi will be watched for potential signaling under the strengthened Takaichi administration.

Hawkish signals and personnel changes watched

"Market focus is also likely to return to the BOJ's policy outlook in the near term."

"The Summary of Opinions from the January meeting, released last week, included several views that pointed to openness toward an earlier additional rate hike."

"Remarks scheduled for 13 February by Policy Board Member Naoki Tamura, who is widely regarded as hawkish, will therefore attract close attention."

"A nomination to replace Policy Board Member Asahi Noguchi, whose term expires at the end of March, is likely to be submitted to the Diet shortly thereafter."

"However, the appointment will be watched closely given that it will be made under a Takaichi administration that has just secured a landslide election victory, raising the possibility that the choice carries a degree of signaling value."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)