The Bank of Japan's next Monetary Policy Meeting will be held on 29 and 30 October. Experts expect the rate hike to be deferred this time.
The Bank of Japan's next Monetary Policy Meeting is scheduled to take place on 29 and 30 October. Market participants believe that the rate hike is highly likely to be deferred rather than implemented this time. The Bank of Japan is said to need to assess the impact of the September rate hike, and some have pointed out that the effects may not emerge over a short period.
At the previous meeting, held on 17 and 18 September, the policy rate was raised from 1.00% to 1.25%. The prevailing understanding is that the Bank of Japan has not fixed the frequency of rate hikes at a set pace.
Long-term interest rates rose to 3.000% at one point on 1 September, prompting moves to review the operation of yield curve control. The market's expectation of rising interest rates has not completely disappeared, and some expect rates to have reached a ceiling, but rates are also seen as being affected by price trends and fiscal and diplomatic developments.
The global economic outlook remains clouded by escalating tensions in the Middle East and Ukraine, while the effects involving energy and fertilizer are expected to persist. Political conditions in the United States, China and elsewhere also remain uncertain. Some have pointed to funding for the formulation of next fiscal year's budget as a potential focus of fiscal management. Even if the Bank of Japan seeks to make up for delays in raising rates, the next decision is expected to come in December, following the same three-month interval as the previous one.