Moody's: Due to uncertainty, the Bank of Japan will continue to hold steady.

Moody's analyst Stefan Angelic said that the Bank of Japan will adopt a wait-and-see approach at its meeting next week. The economist said that despite better-than-expected GDP growth, stubborn inflation, and a new depreciation of the yen making a rate hike possible, policymakers may remain cautious in the face of political uncertainty both domestically and internationally. The resignation of Japanese Prime Minister Shinzo Abe has disrupted policy prospects, and the overseas situation is not looking optimistic, with doubts still lingering about the US-Japan trade agreement. Meanwhile, Japan's exports and industrial output are weakening, and consumer spending is also shrinking. Angelic wrote, "Demand-driven inflation is not enough to warrant a rate hike this month." This is not to say that the Bank of Japan cannot raise rates, but given the unstable economic outlook, policymakers may prefer to be more clear.