BOJ chief to hold first bilateral meeting with PM Takaichi

Core Viewpoint - The upcoming meeting between Bank of Japan Governor Kazuo Ueda and Prime Minister Sanae Takaichi is anticipated to provide insights into the timing of potential interest rate hikes by the central bank, especially in light of the yen's recent decline to a nine-month low [1][2]. Group 1: Meeting Context - Ueda's first bilateral meeting with Takaichi is scheduled for Tuesday, following their previous encounter at a government panel meeting [4]. - This meeting is significant as it marks Takaichi's first formal discussion with Ueda since her appointment, and it typically occurs after a new prime minister takes office [4]. Group 2: Economic Implications - Takaichi has expressed concerns regarding the potential for interest rate hikes, advocating for the BOJ to align its actions with government efforts to stimulate the economy [2][5]. - Market speculation suggests that Takaichi's dovish stance may lead to increased government spending and pressure on the BOJ to delay rate increases, which could further weaken the yen and raise import costs [2][3]. Group 3: Rate Hike Expectations - Many market participants anticipate that the BOJ may raise rates from 0.5% to 0.75% either in December or January, given that inflation has exceeded the 2% target for over three years [6]. - Ueda has hinted at a potential rate hike, but Takaichi's policy adviser cautioned against immediate increases due to recent economic data indicating a contraction in Japan's economy [6][7].