Bank of Japan signals potential December interest rate hike amid inflation target achievement

The Bank of Japan's summary of opinions from its October 29-30 policy meeting indicates that many board members believe a near-term interest rate hike is necessary, signaling a strong possibility of a December move. Some policymakers expressed concern about the economic impact of a further rise, while others argued for an early hike as underlying inflation has reached the 2% target. Japan's policy rate stands at 1.25%, the highest in three decades, and bank lending continued to rise at a solid pace of 5.6% in October, suggesting accommodative financial conditions.