HIROFUMI SUZUKI, the chief foreign exchange strategist at Sumitomo Mitsui Bank in Tokyo, commented on the Bank of Japan's decision: Since the Bank of Japan just raised interest rates in June, this decision to keep interest rates unchanged is in line with market expectations. However, it was surprising to what extent the review committee member Takada Hajime advocated continuous interest rate hikes. The Bank of Japan raised its overall economic growth forecast and lowered its short-term inflation forecast. These adjustments are unlikely to shake the expected path of future rate hikes. The Bank of Japan is expected to continue to raise interest rates at a gradual pace. However, as the volatility of the dollar against the yen increases, we think we are now entering a new phase: if the yen depreciates further, it may prompt the market to take into account expectations of early interest rate hikes.

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