The Bank of Japan may signal later this month that underlying inflation has roughly reached its 2% target, strengthening expectations of another interest rate increase in December, a report by Reuters stated, citing three sources familiar with the central bank's think tank.
Such a signal would be largely symbolic, but it would reinforce market expectations for a December hike and demonstrate the BOJ's willingness to raise interest rates at relatively short intervals if price pressures continue to develop in line with its projections, according to the report.
