Former Bank of Japan Policy Board Member: Expects Bank of Japan to Raise Interest Rates as Early as Next Month

According to a former member of the Bank of Japan's policy board, the Bank of Japan may raise the benchmark interest rate as early as next month, echoing the increasingly strong speculation in the market about imminent action. "The Bank of Japan may take action in October," said Makoto Sakurai, one of the former nine board members, in an interview. This decision will largely depend on the exact degree of stimulus sought by the authorities, "but economic data at that time may be relatively strong, as the effects of tariffs have been delayed." With inflation remaining stable and the economy showing resilience amidst the global economic impact of US trade policies, expectations for the Bank of Japan to raise interest rates at its next policy meeting on October 30th are growing. He also stated that given the high level of uncertainty, officials may wait until December to have more confidence in the impact of tariffs.