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BOJ to consider rate hike in December, governor says; yen, yields rise - REUTERS
Summary
- BOJ to weigh 'pros and cons' of rate hike in December, Ueda says
- Rate hike is easing of accelerator, not applying brakes -Ueda
- Yen, bond yields rise as markets raise bets of December hike
- BOJ to offer more clarity on distance from neutral rate after hike to 0.75% -Ueda
NAGOYA, Dec 1 (Reuters) - The Bank of Japan will consider the "pros and cons" of raising interest rates at its next policy meeting, Governor Kazuo Ueda said on Monday, giving the strongest signal yet of a hike later this month.
The yen and bond yields rose after the remarks, which led markets to price in a roughly 80% chance of a rate hike at the December 18-19 meeting - compared with around 60% last week.
In a speech to business leaders in the city of Nagoya, Ueda voiced confidence that Japan's economy will rebound from a contraction in the third quarter with the hit from U.S. tariffs proving smaller than initially feared.
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