[Reports Suggest Bank of Japan May Raise Rates to 0.75% in December, Government Will Not Intervene]
Three Japanese government sources revealed that the Bank of Japan may raise the policy rate from 0.5% to 0.75% in December, and the government is expected not to intervene in this decision. Governor Kazuo Ueda stated on Monday that he would weigh the 'pros and cons' of a rate hike this month, hinting at a high likelihood of a rate increase during the December 18-19 meeting. The market has priced in an approximately 80% probability of a December rate hike, but some market participants are focusing on the reaction of Prime Minister Sanae Takaichi's government. Ueda's stance on the extent of future rate hikes remains unclear.