The Bank of Japan may delay raising interest rates until January next year

Carol Kong, an analyst at the Commonwealth Bank of Australia, said that the market expects the Bank of Japan to raise interest rates by 25 basis points in December, but political factors may delay it until January next year. Japanese Prime Minister Takaichi Sanae advocates loosening monetary policy and hopes that the government will coordinate closely with the central bank. However, the Bank of Japan may wait until Congress passes the budget before raising interest rates. Delaying the rate hike will buy the Bank of Japan time to study the momentum of the next round of wage negotiations.