The Bank of Japan (BOJ) is expected to keep its benchmark interest rate at 0.25% this week while it assesses domestic wage and spending trends and U.S. policy changes. A survey of economists indicates that 54% predict the BOJ will maintain rates, with a potential hike in January. Despite current inflation above 2% for 30 months, concerns over wage sustainability and recent declines in household spending suggest caution. Analysts highlight the yen’s volatility as a critical factor influencing BOJ decisions, emphasizing a delicate balancing act between supporting economic growth and preventing excessive yen depreciation.
