A Bank of Japan survey released Thursday showed major lenders reported higher corporate demand for funds versus three months ago, suggesting recent rate hikes have not curtailed lending. Ahead of next week’s Bank of Japan policy meeting, the data bolsters market expectations that the central bank will lift the policy rate from the current 1.25% to curb upside inflation risk. Oxford Economics Japan head Shigeto Nagai said Japan’s resilience to higher rates could allow the Bank of Japan to raise i

A Bank of Japan survey released Thursday showed major lenders reported higher corporate demand for funds versus three months ago, suggesting recent rate hikes have not curtailed lending. Ahead of next week’s Bank of Japan policy meeting, the data bolsters market expectations that the central bank will lift the policy rate from the current 1.25% to curb upside inflation risk. Oxford Economics Japan head Shigeto Nagai said Japan’s resilience to higher rates could allow the Bank of Japan to raise its policy rate above 1.75% to prevent further yen weakness and avoid unanchoring inflation expectations.