Capital Economics: The probability of the Bank of Japan raising interest rates in October has increased.

date
26/07/2025
Marcel Thieliant, macroeconomist at Capital Economics, pointed out that the likelihood of the Bank of Japan raising interest rates in October seems greater. Thieliant stated that the trade agreement reached between the United States and Japan eliminated a key downside risk, and the Bank of Japan may provide a more optimistic assessment of the economic outlook at its meeting next week. Due to inflation being significantly higher than the Bank of Japan's expectations, Thieliant firmly believes that the Bank of Japan will resume its tightening cycle in October.