Moody's: Bank of Japan Expected to Stand Pat This Week, Next Rate Hike Seen in October
Moody's Predicts Japan's Central Bank Will Stay Put This Month
According to a report released by Moody's Analytics on September 16, the Bank of Japan is expected to keep monetary policy unchanged at its meeting on September 19 and 20.
While the Bank of Japan has tightened policy faster than expected and hinted at potential further rate increases, Moody's anticipates the next hike to occur in October. The report suggests that Japan's economy is struggling to emerge from the shadows due to sluggish consumer spending and exports.
"Inflation will likely accelerate in the near term as government subsidies for household energy bills are reduced ahead of the introduction of new support measures," Moody's stated, predicting core inflation to rise from 2.7% in July to 2.9% in August.