Nomura on Japan's economy and the BOJ:

  • Japan's economy is expected to continue its recovery and surpass its potential starting in the second quarter of 2024.
  • The newly formed Ishiba cabinet is focused on completely lifting Japan out of deflation, aligning with the Bank of Japan's policy approach.
  • Discussions on wages and prices will resume in late October when Rengo releases its basic plan for the 2025 spring wage negotiations.
  • We anticipate the Bank of Japan will implement another rate hike in December 2024, followed by two more hikes in 2025.
BOJ Kazuo Ueda

Bank of Japan Governor Ueda