According to Odaily, BNP Paribas economist Ryutaro Kono has indicated that despite the uncertainties surrounding President-elect Trump's policies, the Bank of Japan is expected to raise interest rates in December. Kono highlighted that with the presidential inauguration set for January 20, the prevailing uncertainties are unlikely to dissipate in the short term.
The weakening of the yen might prompt the Bank of Japan to take action. Kono noted that if the central bank continues to wait until uncertainties are fully resolved, the yen could weaken further. This potential depreciation of the yen could be a significant factor influencing the Bank of Japan's decision to adjust interest rates. The economic landscape remains complex, with global political developments adding layers of unpredictability to monetary policy decisions. As the situation unfolds, the Bank of Japan's response will be closely monitored by economists and market participants alike.
