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2025-09-12 22:45:14
[HSBC: The Bank of Japan is expected to keep its policy rate unchanged at 0.50% next week] HSBC economists said they expect the Bank of Japan to keep its policy rate unchanged at 0.50% next week. Frederick Neumann and Justin Feng said the Bank of Japan is likely to act cautiously as it deals with domestic political uncertainty and seeks more evidence of economic resilience. Policymakers are also waiting for more trade data following the introduction of US tariffs as Japanese exporters face risks from a global economic slowdown. However, HSBC said strong second-quarter GDP data and rising inflation support the case for the Bank of Japan to raise interest rates before the end of the year. HSBC believes a 25 basis point rate hike in October is possible, but believes the central bank may face pressure to postpone the rate hike if a more moderate leader succeeds outgoing Prime Minister Shigeru Ishiba.
