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.
Bank of Japan Governor Ueda