Bank of Japan Governor Ueda’s view that financial markets remain unstable suggests that the Bank may not raise rates as soon as October as we’re anticipating. However, Ueda reiterated that the Bank will press ahead with further tightening if the economy evolves as anticipated and confirmed that recent data on GDP growth and wages were in line with the Bank’s expectations. And while underlying inflation fell below 2% in July for the first time since 2022, that won’t have come as a surprise to the Bank, either. Accordingly, we’re sticking to our forecast of another rate hike in October.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services