Nomura on the Bank of Japan:
- see the December monetary policy meeting as the most likely date for the next interest rate increase
- BOJ will hike then even if inflation "trends sideways without rising", Nomura cite the Bank's July "Summary of opinions", saying it signalled a shift among policymakers; that the Board still view monetary conditions as accommodative
- Nomura cite BOJ eagerness to move further away from its prior super-easy monetary policy
On the comments last week from BoJ Deputy governor Uchida (you'll recall Uchida said rate hikes were not on a pre-determined path and would depend on economic and inflation data)
- his comments don't rule out the possibility that the BOJ could raise interest rates if stability returns to financial markets
On the yen, Nomura say:
- USD/JPY is likely to find a ceiling around 150
- the carry trade is no longer attractive due to the increase in volatility
