Moody's: Due to uncertainty, the Bank of Japan will continue to stand pat

Jinse Finance reported that Moody's analyst Stefan Angrick stated that the Bank of Japan will likely adopt a wait-and-see approach at next week's meeting. The economist noted that although better-than-expected GDP growth, persistent inflation, and renewed yen depreciation make a rate hike possible, policymakers may remain cautious amid domestic and international political uncertainties. The resignation of Japanese Prime Minister Shigeru Ishiba has disrupted policy prospects, and the overseas situation is not much better, with doubts about the US-Japan trade agreement still lingering. Meanwhile, Japan's exports and industrial output are weakening, and consumer spending is also shrinking. Angrick wrote, "Demand-driven inflation is not sufficient to justify a rate hike this month." This does not mean the Bank of Japan cannot raise rates, but given the unstable economic outlook, policymakers may want greater clarity.