[Institution: If October is missed, the Bank of Japan's last rate hike window may be in January next year]
According to a report by Jinse Finance, Okasan Securities economist Ko Nakayama stated that if the Bank of Japan fails to raise interest rates at its October meeting, the last opportunity for a rate hike will be in January next year. He pointed out that December coincides with the supplementary budget drafting period, making it challenging for the Bank of Japan to tighten monetary policy at that time. "If the central bank misses the opportunity again in January, the decision to raise rates will have to depend on the results of next spring's labor-management wage negotiations (Shunto)," said Ko Nakayama. However, he added that due to the limited payment capacity of small and medium-sized enterprises, next year's wage increases may be lower than this year, and "the momentum for a virtuous cycle between wages and prices is expected to weaken significantly compared to this year." (Jin10)