BOJ Likely to Keep Policy Unchanged Next Week

Tokyo, Oct. 24 (Jiji Press)–The Bank of Japan is seen as likely to maintain its monetary policy at a policy-setting meeting next week, as most BOJ policymakers are expected to call for continuing to monitor the impact of higher U.S. tariffs. At the last policy meeting in September, two Policy Board members–Hajime Takata and Naoki Tamura–proposed raising the policy interest rate to 0.75 pct, but this was rejected by a majority vote. Within the BOJ, there are persistent calls for carefully monitoring consumption and price trends in the United States, out of concern that moves to reflect higher tariffs in prices are slow in the country. Meanwhile, some in the BOJ believe that the central bank needs more time to communicate with the administration of new Prime Minister Sanae Takaichi, who is believed to favor monetary easing. The BOJ is also mindful of U.S.-China trade tensions and the deteriorating earnings of Japanese exporters. After the upcoming meeting, the BOJ is scheduled to release updates on its economic growth and inflation forecasts. The central bank may upgrade its fiscal 2025 growth forecast, currently at 0.6 pct, in light of the delaying impact of higher U.S. tariffs. END [Copyright The Jiji Press, Ltd.]