TechFlow news, on October 28, according to Jinshi Data, Justin Low, Senior Analyst at Forexlive, pointed out that although the Japanese government is seeking new coalition partners, the Liberal Democratic Party will still maintain dominance in central bank policy-making. Market focus has now shifted to whether the Bank of Japan will announce a rate hike at its December monetary policy meeting.
Analysis shows that a rate hike in October has already been ruled out, while a December hike depends on the degree of political stability. Low emphasized that the Bank of Japan tends to make significant policy adjustments only after the political environment becomes clear. If the formation of a coalition government proceeds poorly, the rate hike could be delayed until January 2025.
