Global Market: Japanese banks see rising corporate loan demand ahead of BOJ meeting

What happened: A BOJ survey cited by Reuters showed rising corporate loan demand at Japanese banks ahead of the central bank's policy meeting next week. Key numbers: Diffusion index for major banks stood at +3 in the September 9 to October 13 survey, versus -1 three months earlier. The BOJ's current policy rate is 1.25%, with a 2% inflation target. The two-day meeting ends October 30. Why it matters: The reading reinforces market expectations that the BOJ will keep raising rates. The BOJ has said it will assess how prior hikes affect corporate funding to judge how close rates are to neutral.

A BOJ survey cited by Reuters showed rising corporate loan demand at Japanese banks ahead of the central bank's policy meeting next week.

The reading reinforces market expectations that the BOJ will keep raising rates. The BOJ has said it will assess how prior hikes affect corporate funding to judge how close rates are to neutral.