BOJ likely aiming to hike rates to 1.5 or 2 by early 2028Sakurai
Renewed yen falls could prod BOJ to hike as soon as December
BOJ may hold till January given political, market uncertainty
Huge debt issuance may keep BOJ from accelerating QT

TOKYO, Nov 5 Reuters The Bank of Japan is likely to raise interest rates in coming months with January emerging as the most likely timing, when there will be more clarity on political and market developments, former BOJ board member Makoto Sakurai said on Tuesday.

The central bank will eventually aim to raise shortterm borrowing costs currently at 0.25 to 1.5 or 2 by the end of Governor Kazuo Ueda39;s term in April 2028, he said.

The BOJ probably wants to hike rates once more by March next year. The exact timing will depend much on market and political developments, Sakurai told Reuters in an interview.

With domestic politics still in flux, acting in December might be tricky. January seems to be more likely as the BOJ would have more data including on whether consumption and wage growth will hold up, said Sakurai, who retains close contact with incumbent policymakers.

But the chance of a December rate hike would heighten if the yen resumes its decline towards the threedecade trough near 162 to the dollar hit in July, Sakurai said. The dollar stood at 152.45 yen on Tuesday.

Governor Ueda emphasised his resolve to keep raising rates at last week39;s news conference, which seems to reflect the BOJ39;s desire to avoid…