According to Jinshi data, the minutes from the Bank of Japan's June monetary policy meeting show that many committee members believe the inflation outlook will exceed expectations, but there is significant uncertainty. The debate over whether inflation is temporary may continue into July.
The Bank of Japan raised its inflation expectations in July, but Governor Kazuo Ueda's hawkish stance has weakened. He emphasized that the pace of price increases is expected to slow down starting next year, which may be the reason for his reduced hawkish inclination.
Japan and the U.S. completed trade agreement negotiations in July, but the impact on the economy remains to be assessed. The summary of opinions from the July monetary policy committee may provide an evaluation on this.
