Institutions: If missed in October, the Bank of Japan's last interest rate hike window may be in January next year.

Jin10 data reported on October 6, economist Ko Nakayama from Gangan Securities stated that if the Bank of Japan fails to raise interest rates at the October meeting, the last opportunity for an increase will be in January next year. He noted that December coincides with the supplementary budget preparation period, making it difficult for the Bank of Japan to tighten monetary policy at that time. "If the Central Bank misses the opportunity again in January, the decision to raise interest rates will have to be made based on the results of the spring labor negotiations next year (Shuntou)," Ko Nakayama said. However, he added that due to the limited payment capacity of small and medium-sized enterprises, next year’s wage increase may be lower than this year’s, "and the momentum for a virtuous cycle between wages and prices is expected to weaken significantly compared to this year."