Rabobank Research Global Economics & Markets reports that the Bank of Japan (BOJ) is reluctant to continue rapid rate hikes, with September meeting notes revealing internal divisions and concerns over weak private consumption.

BOJ balances growth and tightening risks

“The BOJ doesn’t want to keep raising rates rapidly, the September meeting notes showing some hawks but others pointing to weak private consumption and warning against hasty action, as government representatives urged weighing the cumulative impact of past rate increases.”

“However, with the latest Tankan survey the most upbeat for large manufacturers since 2018 the Bank may not have a choice – assuming it is the one choosing, not Bessent.”