Japan's central bank is taking a cautious stance in its latest policy review. According to insiders, despite the government's recent fiscal stimulus package likely boosting economic growth forecasts, the Bank of Japan (BOJ) is expected to hold interest rates steady at its upcoming meeting.
Flexible Approach to Policy
Sources familiar with internal discussions say BOJ officials have not locked in a specific pace for rate hikes. This reflects a careful balancing act amid uncertain inflation momentum and global economic volatility.
Growth Forecast May Rise
With increased public spending—particularly in infrastructure and green energy—the central bank may revise up its real GDP growth outlook in the next economic projection report. Yet, this does not signal an imminent policy shift.
- Core inflation sustainability remains a key concern
- Wage trends will heavily influence future decisions
- Global geopolitical risks are factored into timing
Markets widely anticipate that the BOJ will maintain accommodative settings for several quarters, with any tightening likely to be gradual and data-dependent.