Market Analysis: The Bank of Japan is expected to keep the interest rate unchanged, following signals for a rate increase in October.

According to Mars Finance, observers generally expect the Bank of Japan to keep interest rates unchanged at the monetary policy meeting ending on Friday, and whether there will be signals for rate hikes in October or December is worth following. A media survey of 50 economists shows that respondents unanimously predict the Bank of Japan will maintain the interest rate at 0.5%. After nine months, the Fed has resumed rate cuts overnight and predicts two more cuts of 25 basis points before the end of the year. Multiple uncertainties may prompt the Bank of Japan to choose to wait and further assess the situation. In addition to the Fed's restart of rate cuts, Prime Minister Shigeru Ishiba's announcement of resignation has also brought turmoil to domestic politics. Meanwhile, in terms of trade, Japanese authorities are reportedly still assessing the potential impacts of U.S. tariffs both domestically and abroad.