Citi Macro: Bank of Japan May Turn More Pessimistic on Economic Activity

According to Jin10, Marcel Thieliant, head of Asia-Pacific at Citi Macro, said the Bank of Japan may be more pessimistic about Japanese economic activity and may keep interest rates unchanged at next week’s meeting. Thieliant said the central bank will definitely maintain its view that inflation risks are tilted to the upside, and Citi Macro expects the Bank of Japan to raise its policy rate to 1.25% in October.