Kaitou Macro: The Bank of Japan may hold a pessimistic attitude towards the economy and is expected to raise interest rates to 1.25% in October

According to Marcel Thieliant, the head of Asia Pacific at Capital Economics, the Bank of Japan may become more pessimistic about economic activity in Japan and maintain interest rates unchanged at next week's meeting. Marcel Thieliant pointed out that the rise in crude oil prices has dampened the optimistic sentiment of the Bank of Japan, but the Bank of Japan will adhere to the view that inflation risks are biased towards an upward trend. Kaitou Macro predicts that the Bank of Japan will raise its policy interest rate to 1.25% in October.