Sources: The Bank of Japan leans toward not raising interest rates consecutively in October.

On October 13, foreign media cited sources stating that Bank of Japan officials lean toward avoiding another consecutive rate hike this month, while remaining open to taking action as early as December. Insiders noted that in the absence of signs indicating a sudden rise in upside inflation risks, BOJ officials see no need for back-to-back rate hikes. The central bank will carefully analyze economic data to assess whether a new round of rate hikes can be initiated at its December policy meeting.

Sources indicated that the final policy decision for the October 30 meeting remains fluid until the last minute. To manage upside inflation risks, Governor Kazuo Ueda’s Policy Board raised interest rates to 1.25% last month. Earlier, Bessent had urged Japan to continue advancing policy normalization to support a stronger yen. (Jin10)