DBS Bank: Bank of Japan still likely to raise policy rates in December

Ma Tieying, an analyst at DBS, said in comments that the Bank of Japan could still raise its policy rate by 25 basis points in December. The veteran economist said that the Japanese labor union is expected to set a 2026 wage negotiation target around November-December. She said that the Japan Federation of Trade Unions has said that the 2026 wage growth target is 5%, the same as this year. The economist also said that if the Federal Reserve delays the rate cut at its December meeting, the possibility of the Bank of Japan raising interest rates in December may increase, which will create a window period for the Bank of Japan to act. (Jin Ten)