French Agricultural Credit Bank: The Bank of Japan may not raise interest rates until January next year.

French Agricultural Credit Bank economist Takuji Aida said that due to the contraction of the Japanese economy in the first quarter of 2025, the Bank of Japan may not be able to raise interest rates until January next year. The Bank of Japan needs to confirm that the economy did not deteriorate from July to September, update its forecasts in January next year, and then resume raising rates. It is expected that Japan's real GDP for the second quarter will shrink by an annual rate of 0.4%, plunging Japan into a technical recession. The Bank of Japan seems unable to continue with the mistake of raising interest rates this year, as rate hikes have made business financing difficult and brought downward pressure on domestic demand.