BANK OF JAPAN September meeting minutes indicate policymakers may see room for further rate hikes, supporting market expectations for a December increase. One policy board member said corporate feedback shows prior and potential further rate rises have had limited impact on operations, with almost no firms cutting capex because of higher borrowing costs. Another member said recent equity gains and a weaker yen have eased corporate financial conditions. With inflation persisting, many economists

BANK OF JAPAN September meeting minutes indicate policymakers may see room for further rate hikes, supporting market expectations for a December increase. One policy board member said corporate feedback shows prior and potential further rate rises have had limited impact on operations, with almost no firms cutting capex because of higher borrowing costs. Another member said recent equity gains and a weaker yen have eased corporate financial conditions. With inflation persisting, many economists now expect the BANK OF JAPAN terminal rate to exceed 1.75%.