The Bank of Japan is expected to maintain interest rates unchanged and may raise its inflation outlook.

Jin10 data reported on July 30 that institutional analysis expects the Bank of Japan to maintain the Benchmark Interest Rate on Thursday and raise inflation expectations. After the Japan-U.S. trade agreement reduced some uncertainties, investors are looking for signs of another interest rate hike this year. The main focus of this meeting will be to what extent the Bank of Japan signals another rate hike this year, with traders currently estimating the likelihood of a hike before the end of the year to be about 75%. Earlier, informed sources indicated that Bank of Japan officials believe that after the Japan-U.S. trade agreement has eliminated a key source of uncertainty, the Bank of Japan may consider raising rates again. However, as the crucial task of assessing the actual impact of tariffs remains, the Bank of Japan is currently not considering a sudden rate hike. Nevertheless, the momentum for finding hints of a rate hike from the Bank of Japan is gradually increasing, and the view of October as a potential timing for the next rate hike is becoming increasingly popular in the market.