Sources: After Japanese Prime Minister Shigeru Ishiba lost the Senate election, the Bank of Japan is expected to stick to its gradual rate hike stance

Odaily Planet Daily News According to people familiar with the matter, Bank of Japan officials believe that there is little need to change the monetary policy stance of gradually raising interest rates after Japanese Prime Minister Shigeru Ishiba suffered a setback in the Senate election. Although officials will continue to pay close attention to the government's fiscal policy trends, they still believe that it is appropriate to continue to raise the benchmark interest rate if the economic outlook is realized as expected. People familiar with the matter said that the policy committee led by Bank of Japan Governor Kazuo Ueda is likely to keep the interest rate unchanged at 0.5% at next week's meeting. With Japan-US trade negotiations still ongoing, officials hope to assess the impact of the agreement on inflation trends and economic prospects before raising interest rates again. People familiar with the matter said that although the election results will not change the policy path of the Bank of Japan at present, some officials believe that it is necessary to be vigilant about the upward risks of inflation that may be brought about by substantial fiscal easing. Officials have noticed that inflation risks are rising as soaring prices of food such as rice have pushed up price increases beyond expectations. (Jinshi)