CITIC Securities: Bank of Japan has no urgency to raise interest rates, still expected to remain unchanged for the rest of the year after this rate hike.

CITIC Securities research report points out that the Bank of Japan raised interest rates by 25bps in June as scheduled, announced a plan to temporarily suspend reducing bond purchases, and the wording of the resolution is neutral with a slightly hawkish stance, continuing the forward guidance of possible further rate hikes. Governor Kita was absent from this meeting due to illness. We expect Japan's headline inflation to continue to show moderate performance within the year, and the Bank of Japan does not feel a sense of urgency to continue raising interest rates, possibly maintaining the policy rate at 1% after this rate hike.