Market Analysis: The Bank of Japan is expected to keep interest rates unchanged, focusing on signals for a rate hike in October

ChainCatcher news, according to Gelonghui, observers generally expect the Bank of Japan to maintain interest rates at its monetary policy meeting ending on Friday, and whether it will signal a rate hike in October or December is worth noting. A media survey of 50 economists shows that respondents unanimously predict the Bank of Japan will keep the interest rate unchanged at 0.5%.

Overnight, the Federal Reserve resumed rate cuts after nine months and predicted two more 25 basis point cuts before the end of the year. Multiple uncertainties may prompt the Bank of Japan to adopt a wait-and-see approach for further assessment. In addition to the Fed restarting rate cuts, Prime Minister Shigeru Ishiba's announcement of his resignation has also brought turmoil to domestic politics. Meanwhile, regarding trade, Japanese authorities are reportedly still assessing the potential impacts of U.S. tariffs both domestically and internationally.