Bank of Japan Unlikely to Raise Rates Significantly, Sumitomo Mitsui Says

According to Hirofumi Suzuki, chief FX strategist at Sumitomo Mitsui Bank, on June 16, Japan's central bank voting saw one dissent but the market impact remained limited. Officials did not propose a 50 basis point rate hike, which had been a prior concern.

The bank expects to continue raising rates on a gradual schedule, approximately once every six to twelve months. If inflation accelerates or the yen weakens further, the timing of the next rate increase could be pulled forward.