According to Jinshi Data on September 27, the results of the Japanese leadership election support the view of Alvin Liew, an economist at UOB, that the Bank of Japan will continue to normalize its policy. The election of former Defense Minister Shigeru Ishiba is seen as support for Bank of Japan Governor Kazuo Ueda.
UOB expects the Bank of Japan to continue tightening rates, although this may not be a continuous rate hike cycle and may be limited. The bank expects the Bank of Japan to raise rates by 25 basis points to 0.50% in the fourth quarter and believes that this will be the terminal rate.
