Kazutaka Maeda, senior economist at Meiji Yasuda Research Institute: The outlook report shows that as the Bank of Japan is more optimistic about exports and capital expenditure driven by demand related to artificial intelligence, its policy focus has further shifted to the upward risks faced by inflation and economic activity. Although its inflation forecast is generally in line with the 2% target, the Bank of Japan seems increasingly aware of the possibility that inflation may be overadjusted. The Bank of Japan may no longer stick to the previously assumed pace of raising interest rates every six months, but is considering raising interest rates every three months. This makes the December interest rate meeting a reasonable time for the next rate hike.

Kazutaka Maeda, senior economist at Meiji Yasuda Research Institute: The outlook report shows that as the Bank of Japan is more optimistic about exports and capital expenditure driven by demand related to artificial intelligence, its policy focus has further shifted to the upward risks faced by inflation and economic activity. Although its inflation forecast is generally in line with the 2% target, the Bank of Japan seems increasingly aware of the possibility that inflation may be overadjusted. The Bank of Japan may no longer stick to the previously assumed pace of raising interest rates every six months, but is considering raising interest rates every three months. This makes the December interest rate meeting a reasonable time for the next rate hike.