Still expected the Bank of Japan may adjust policy

Aihucha News, September 22: ING said that based on the Bank of Japan’s statement and the wording of Ueda Kazuo’s press conference, the Bank of Japan still believes that higher-than-expected inflation is temporary and is driven more by cost-push factors. , Japan is not yet in a position to sustainably achieve its inflation target. However, we believe the Bank of Japan may adjust its policy again in October and make its first attempt to raise interest rates in the second quarter of next year. We believe consumer prices are likely to remain above the BOJ's forecast and more pronounced demand pressures will emerge in the coming months, allowing the BOJ to at least change its YCC policy. In terms of raising interest rates, the Bank of Japan is likely to wait until there are signs of sustained and steady wage growth, so it may raise interest rates in the second quarter of next year.