Market Outlook: Markets Should Factor in BOJ's Gradual Rate Hikes

Goldman Sachs economists argue that Bank of Japan (BOJ) Governor Kazuo Ueda's less cautious tone during Thursday's press conference aims to allow markets to factor in gradual interest rate hikes. Economists expect the BOJ to raise rates in January. However, if the yen weakens to around 160 against the dollar, the BOJ may take action at its next meeting in December, following the rate hike in July. USD/JPY is trading at 152.46.