The Bank of Japan may boost growth expectations through stimulus policies; short-term interest rate policy remains unchanged.

As the Japanese government’s stimulus measures advance, market attention to the Bank of Japan’s next policy move continues to rise. According to the latest news, the Bank of Japan is internally reassessing the outlook for economic growth, with signs indicating that officials are inclined to raise their growth forecasts for this year.

The logic behind this shift is clear: government stimulus policies are expected to boost domestic demand, thereby improving overall economic performance. When formulating monetary policy, the Bank of Japan considers the actual effects of fiscal stimulus to adjust its growth assessments.

Interestingly, despite being more optimistic about economic growth, Bank of Japan officials do not have a clear preset inclination toward raising interest rates in the near term. The market expects that the central bank’s policy meeting this month will maintain current interest rates and not initiate a new rate hike cycle. This reflects the central bank’s choice to remain patient with policy until the stimulus effects are fully realized.

In short, the Bank of Japan is adjusting its expectations to reflect positive signals for the economy but remains cautious in its actions, avoiding hasty increases in borrowing costs in the short term to allow sufficient time for stimulus measures to take effect.