Citigroup strategist Tomohisa Fujiki says equity gains and firm inflation have
strengthened market-implied Bank of Japan hike odds. The bar for consecutive
hikes remains high, but the probability of quarterly increases has risen and
position-driven volatility should persist short term. Citigroup forecasts the
BOJ policy rate at 1.50% in December (market-implied 75% chance of a 25bp move),
1.75% in Q1 and 2.00% by Q3.