SOMPO INSTITUTE PLUS Tokyo Senior Economist Masato Koike comments on the Bank of Japan's decision: My impression is that this statement is slightly hawkish. The section on prices and the 2% inflation target is particularly remarkable. The statement's wording suggests that inflation is “close to 2%,” while also emphasizing the importance of confirming whether inflation can be firmly anchored at 2%. As inflation seems to be slowly approaching 2%, I think this marks a step forward. With interest rates already at historically high levels, I think it's still necessary to wait a while and evaluate market conditions. However, based on today's results, my feeling is that the Bank of Japan is more likely to raise interest rates in October compared to December.

SOMPO INSTITUTE PLUS Tokyo Senior Economist Masato Koike comments on the Bank of Japan's decision: My impression is that this statement is slightly hawkish. The section on prices and the 2% inflation target is particularly remarkable. The statement's wording suggests that inflation is “close to 2%,” while also emphasizing the importance of confirming whether inflation can be firmly anchored at 2%. As inflation seems to be slowly approaching 2%, I think this marks a step forward. With interest rates already at historically high levels, I think it's still necessary to wait a while and evaluate market conditions. However, based on today's results, my feeling is that the Bank of Japan is more likely to raise interest rates in October compared to December.