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2025-09-12 19:48:43
[Moody's: Bank of Japan will continue to stand pat due to uncertainty] Moody's analyst Stefan Angric said the Bank of Japan will choose to wait and see at its meeting next week. The economist said that although better-than-expected GDP growth, stubborn inflation and new yen depreciation make rate hikes possible, policymakers are likely to remain cautious amid political uncertainty at home and abroad. The resignation of Japanese Prime Minister Shigeru Ishiba has disrupted the policy outlook, and the overseas situation is not much better, with doubts about the US-Japan trade agreement remaining. At the same time, Japan's exports and industrial output are weakening, and consumer spending is also shrinking. "Demand-driven inflation is not enough to guarantee a rate hike this month," Angric wrote. This is not to say that the Bank of Japan cannot raise interest rates, but given the unstable economic outlook, policymakers may want to be more clear.
