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Japan’s Economy remains Fragile amid a New Cycle – Analysis

The Bank of Japan is widely expected to hold rates steady at its October meeting while formally assessing whether inflation has sustainably reached the 2 percent target set in 2013, a milestone that would mark the end of 14 years of unconventional easing and the start of policy normalization. Core CPI has stayed above 2 percent for four years, with September readings accelerating to 2.1 percent, yet the BOJ prioritizes trend inflation and wage growth; it remains cautious about rapid hikes given sluggish growth (projected 0.6–0.8 percent) and the risk of harming the economy. [...]