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2026-09-18 12:20:09
State Street Global Advisors: Bank of Japan May Shift to a Cautious Stance 1. State Street Global Advisors suggests that the Bank of Japan may shift to a cautious stance after raising its policy rate to 1.25%. Economist Krishna Bhimavarapu points out that while adjustments are possible at each policy meeting, Governor Kazuo Ueda may avoid explicitly committing to further rate hikes given weak household consumption and relatively moderate inflation. 2. Strategist Masahiko Loo expects Ueda to maintain a neutral-to-hawkish stance. He believes that resilient economic growth, persistent inflation risks, and low real policy rates all support continued policy normalization. The current focus is shifting from whether the Bank of Japan will raise rates further to what level interest rates will ultimately rise to.
