Moody's Predicts Bank Of Japan To Maintain Current Policy In September

According to Odaily, Moody's Analytics has released a report indicating that the Bank of Japan is expected to maintain its current monetary policy during the meetings scheduled for September 19 and 20. Despite the Bank of Japan's faster-than-expected policy tightening and hints at potential further rate hikes, Moody's anticipates the next rate increase will not occur until October. The report highlights the challenges faced by the Japanese economy, citing weak consumer spending and sluggish exports as significant hurdles. Moody's notes that the economy is struggling to recover, partly due to the government's reduction in assistance for household energy bills before introducing new support measures. This reduction is expected to lead to a sharp rise in short-term inflation. Moody's forecasts that the core inflation rate will accelerate from 2.7% in July to 2.9% in August.