Following the BOJ's 0.25-percentage-point increase in its policy rate to 1.25%, long-term interest rates reached the 3% range. Economic magazines featured the outlook for inflation risks and stock prices, reporting year-end guideposts for the Nikkei 225 and forecasts for individual stocks.
At its September Monetary Policy Meeting, the BOJ raised its policy rate by 0.25 percentage points, bringing it to 1.25%. Governor Ueda (植田総裁) suggested that further rate hikes remained possible depending on price trends. Meanwhile, long-term interest rates continued to rise, and on 1 September the yield on newly issued 10-year Japanese government bonds reached 3%, its highest level in 30 years.
The economic magazines focused on the impact of rising interest rates on stock prices and the economy, featuring views from The Economist and a special feature in Toyo Keizai. The Economist discussed the possibility of further rate hikes and identified the relationship between prices and interest rates as a key factor in the outlook. Toyo Keizai explored the outlook for stock prices in a special feature, suggesting a year-end range of approximately ¥65,000 to ¥75,000 for the Nikkei 225.
Regarding the future direction of the Nikkei 225, some analysts offered an optimistic outlook, suggesting that it could move toward a new year-end high of around ¥73,000. Other analysis attributed the stock market's direction to rising interest rates and improving corporate profit margins, highlighting the importance of selecting growth stocks and improving market-wide fundamentals.
Political stability and the implementation of growth strategies were also cited as areas of market focus. The government set out a basic policy under Prime Minister Takaichi (高市首相), while stable energy supplies and a stronger national security framework were identified as key areas of future policy.