According to Odaily, multiple Japanese media outlets report that the Bank of Japan is expected to keep interest rates unchanged in its upcoming meeting next week. Insiders suggest that while Japan's economic and price trends align with expectations, policymakers are closely monitoring wage trends both domestically and globally. These sources indicate that it is unlikely for the Bank of Japan to raise rates during the meetings scheduled for Wednesday and Thursday next week unless there is a significant risk of yen depreciation, which could increase import prices.
The last adjustment to the short-term policy rate target, raising it to 0.25%, occurred during a meeting in July. As the December meeting approaches, there is growing concern about the potential impact on Japanese businesses, particularly exporters, due to U.S. President-elect Trump's promise to increase tariffs. Some officials within the Bank of Japan believe it is time to raise rates, but the majority caution against hasty actions. The decision reflects a careful consideration of both domestic economic conditions and international developments.
Miyuki
