We expect BoJ to leave policy on hold at October MPM; Ueda worried about delayed impact of tariffs
Key points
- We expect BoJ to leave policy on hold at October MPM with 7-2 majority vote; Governor Ueda appears to want to wait a little longer to assess impact of US tariffs
- Takaichi cabinet was inaugurated on October 21, and BoJ appears to be looking for best time to coordinate its views with new administration
- We see Bank raising rates in January, but December hike also possible depending on circumstances