BOJ winter rate hike still a possibility despite political turmoil

Inflation fueled by currency depreciation remains risk to Japan's economy

20251014N Ueda Takaichi

Bank of Japan Governor Kazuo Ueda, left, could move to raise interest rates over the misgivings of Sanae Takaichi, the new leader of the Liberal Democratic Party. (Source photographs obtained by Nikkei)

ISAYA SHIMIZU

TOKYO -- Japan's political turmoil has led Bank of Japan watchers to largely rule out an interest rate hike at the central bank's upcoming October meeting, but an increase at one of the BOJ's winter meetings could still be in the cards depending on the trajectory of the yen.

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