State Street Global Advisors economist Krishna Bhimavarapu said the BOJ’s "hawkish pause" signals it expects further rate hikes and that the bank is increasingly confident inflation is reaching its target via a self-sustaining wage–price–consumption loop that could anchor expectations around 2%. He added this view is noticeably more optimistic than the government’s cautious stance. Still, fragile growth provides reason not to rush; Q3 GDP may show weakening momentum with consumption the weakest

2026-10-30

State Street Global Advisors economist Krishna Bhimavarapu said the BOJ’s "hawkish pause" signals it expects further rate hikes and that the bank is increasingly confident inflation is reaching its target via a self-sustaining wage–price–consumption loop that could anchor expectations around 2%. He added this view is noticeably more optimistic than the government’s cautious stance. Still, fragile growth provides reason not to rush; Q3 GDP may show weakening momentum with consumption the weakest link, making the upcoming GDP print pivotal to whether December becomes the next tightening window.