MUFG: The possibility of the Central Bank of Japan raising interest rates again by the end of the year will rise

Jinshi Data News on October 21st, Mitsubishi UFJ believes that the probability of Japan's Central Bank raising interest rates again before the end of the year is increasing, depending on Japan's economic performance and the post-election development. The upcoming Japanese election is crucial, but external factors such as the US election may affect the effectiveness of yen returns. Mitsubishi UFJ said that the Japanese stock market has fully recovered from the summer decline, indicating that financial stability risks have improved, which may encourage Japan's Central Bank to maintain or accelerate its interest rate trajectory. After the upcoming Japanese election (October 27), expectations for Japan's Central Bank to raise interest rates may increase. This development may become a catalyst for further appreciation of the yen later this year. However, if Trump wins the US presidential election, the yield on US Treasury bonds may rise and the US dollar may strengthen, then any potential rise in the yen may pale in comparison.