Former Bank of Japan Committee Member: Possibility of a Rate Hike in March Increases

Former policy committee member of the Bank of Japan, Makoto Sakurai, stated that given the increasing uncertainty brought about by US President-elect Trump, there is a growing possibility that the Bank of Japan will postpone its interest rate hike until March. "When Trump comments on various matters, there seems to be too much uncertainty. There may not be enough reason to support an interest rate hike in January," said Sakurai during his speech. Observers at the Bank of Japan are looking for hints about a possible rate increase this month or later. Sakurai believes that there is as high as a 70% chance for an interest rate hike in March because the Bank of Japan might prefer to wait until after Trump's new administration takes office and circumstances become clearer before taking action.