According to Mars Finance, on September 16, Moody's Analytics said in a report that it expects the Bank of Japan to remain on hold at its monetary policy meeting on September 19 and 20. Although the Bank of Japan tightened its policy faster than expected and hinted that further rate hikes may be in the works, Moody's expects the next rate hike to be in October.
The report said that due to sluggish consumer spending and exports, it is difficult for Japan's economy to escape the gloom. "Inflation will rise sharply in the short term as the government reduces assistance for household energy bills before launching new support measures," Moody's said, predicting that core inflation will accelerate from 2.7% in July to 2.9% in August. (Jinshi)
