Marcel Thieliant, head of Asia-Pacific at Capital Economics, says the BANK OF JAPAN is likely to be more pessimistic on Japanese economic activity and will probably keep policy rates unchanged at next week’s meeting. Although the BOJ judged in June that downside risks to activity had eased, Thieliant said a renewed rise in oil prices has dented that optimism. He added the BOJ will likely continue to view inflation risks as tilted to the upside. Capital Economics expects the BOJ to raise its poli

Marcel Thieliant, head of Asia-Pacific at Capital Economics, says the BANK OF JAPAN is likely to be more pessimistic on Japanese economic activity and will probably keep policy rates unchanged at next week’s meeting. Although the BOJ judged in June that downside risks to activity had eased, Thieliant said a renewed rise in oil prices has dented that optimism. He added the BOJ will likely continue to view inflation risks as tilted to the upside. Capital Economics expects the BOJ to raise its policy rate to 1.25% in October.