Market Analysis: The results of the Bank of Japan's short-term outlook survey are expected to support the view of raising interest rates.
Economists have indicated that a short-term survey by the Bank of Japan shows improvement in the business sentiment of Japanese companies and an increase in capital expenditure plans, which could strengthen the case for the Bank of Japan to raise interest rates at this week's meeting. The economist at the Nomura Research Institute, Takeshi Minami, stated, "Although there was negative growth in the July-September quarter, the supply-demand gap is showing signs of improvement according to the short-term survey, and it is expected to continue to push up underlying inflation." However, he added that considering the forecast for inflation to slow down in the next fiscal year, the pace of monetary tightening after the next rate hike may be very gradual.
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