According to Odaily, Morgan Stanley economists suggest that Japan's economic policy framework, including the Bank of Japan's 2% inflation target, is likely to remain unchanged despite the ruling coalition failing to maintain a majority in the recent House of Representatives election held last Sunday.
Economists predict that the Bank of Japan is expected to raise interest rates in January next year, with a December rate hike considered a risk scenario. However, if political uncertainty persists or market conditions become volatile, the threshold for the Bank of Japan to take action this year may be higher.
