Australia and New Zealand Banking Group: The Bank of Japan may maintain the policy interest rate unchanged for the remaining time this year.

Tom Kenny, a senior international economist at ANZ Bank's research department, stated in a report that the Bank of Japan may maintain its policy rate unchanged for the rest of the year. He pointed out that the uncertainty of the impact of US tariffs on the Japanese economy, along with the unclear domestic political situation in Japan, may prompt the Bank of Japan to stay on hold until next year. The Bank of Japan last raised interest rates in early 2025. Kenny stated that one of the main reasons for the central bank's pause in raising rates is its downward revision of inflation expectations for the fiscal year 2026, which are currently below the 2% price stability target. This indicates a decreased confidence among members of the central bank's policy committee in achieving their mission of price stability, he added. ANZ Bank has delayed its expectation of a 25 basis point rate hike by the Bank of Japan from October 2025 to January 2026.