Mizuho: The Bank of Japan still needs time to assess the impact of tariffs. The earliest opportunity for a rate hike is the end of the year.

Caijing APP learned that SMBC released a research report stating that the end of the year is considered the earliest opportunity for the Bank of Japan to raise interest rates. SMBC pointed out that the summary of the Bank of Japan's July monetary policy meeting will be released on August 8. In terms of monetary policy, the summary presents a relatively hawkish view on prices, including "unlike previous stages, both actual inflation and inflation expectations are rising steadily, accompanied by increases in corporate profits and wages," and "the second-round effects of price increases are more likely to appear, and underlying inflation is rising." Some council members - likely hawks - advocate for raising interest rates as soon as possible, believing that "from a risk management perspective, the Bank of Japan should raise policy rates in a timely manner" and "the central bank needs to remember not to be too cautious to miss the opportunity to raise interest rates."