According to Jinshi, Naomi Muguruma, chief fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities, said in a research report that recent political developments in Japan may slightly reduce the possibility of the Bank of Japan raising interest rates at its December meeting.
Japanese Prime Minister Shigeru Ishiba's monetary policy rhetoric has changed since he was appointed prime minister on Oct. 1, from "I will respect the Bank of Japan's decision" to "it is not appropriate to raise interest rates in the current environment."
Muguruma added that while Ishiba’s actual views may not have changed, it may be difficult for the current prime minister to agree to a rate hike so soon after the Oct. 27 election.
