Dominion Securities: The Bank of Japan may remain inactive in October and then raise interest rates in December.

On October 7, Jin10 reported that TD Securities stated that the Bank of Japan may raise interest rates in December and has revised its previous expectations for an increase in October. The bank's strategist pointed out that the long-term advisor to the new leader of the ruling party, Kishi Sanae, Honda Yoshirou, hinted in an interview that Kishi's government would not oppose further rate hikes, but it may take some time to implement the policy. The strategist said, “We expect the Bank of Japan's hawkish stance… will be more inclined to wait a bit longer.” They also added that the Bank of Japan Governor Ueda Kazuo is also likely to release hawkish signals in October to pave the way for a rate hike in December, in order to avoid surprising the market.