Kai Tuo Macro: The Central Bank of Japan may raise interest rates again in October

According to Jin10 data on September 20, Capital Economics maintains its expectation that is inconsistent with the market consensus, that is, the Central Bank of Japan will raise interest rates by 50 basis points at the policy meeting in October. However, Marcel Thieliant, Director of Asian Economic Research at Capital Economics, pointed out two risks to this view. One is that the new Prime Minister of Japan may hold elections in the coming weeks after taking office, and the Central Bank of Japan may remain cautious during the election period. The other is that the Central Bank of Japan has promised not to raise interest rates as long as it deems the financial markets to be unstable.