Moody's: Bank of Japan Expected to Stay Put This Week
Moody's Analytics has stated in a report that they expect the Bank of Japan to hold steady at its upcoming monetary policy meeting on September 19 and 20. While the bank has been tightening policy faster than anticipated and hinted at further rate increases, Moody's predicts the next hike will occur in October.
The report suggests that the Japanese economy is struggling to emerge from its slump due to weak consumer spending and exports. "Inflation is expected to spike in the near term as the government's assistance with household energy bills has been reduced before new support measures are introduced," Moody's stated, forecasting that core inflation will accelerate from 2.7% in July to 2.9% in August.