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BoJ reinstates mention of "virtuous cycle"; Takata proposes successive rate hike

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BoJ reinstates mention of "virtuous cycle"; Takata proposes successive rate hike

Key points
  • BoJ maintains policy rate at 0.75%; Takata makes surprise call for another rate hike
  • Renewed use of "virtuous cycle" symbolizes Outlook Report's shift to more hawkish tone
  • Shift to more expansionary fiscal policy by Takaichi cabinet would likely heighten BoJ's concerns about upside risks to inflation

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