Bank of Japan to remain undeterred on rate hikes despite LDP’s shock

Bank of Japan Governor Kazuo Ueda discussed inflation and monetary policy at a recent IMF and World Bank Group meeting. Despite the ruling Liberal Democratic Party’s election shock, analysts believe the Bank of Japan will continue with its interest rate hike cycle. Prime Minister Shigeru Ishiba intends to stay on despite the election loss, and the LDP will likely remain in control. The BOJ is expected to keep rates unchanged this week, with a potential hike in the future depending on market developments. The yen’s weakness has led to gains in Japan’s stock market, with experts predicting further growth in corporate earnings and stock prices.