The Bank of Japan is expected to maintain its target for its benchmark interest rate at 0.25 percent at a two-day policy meeting next week, as the latest inflation data suggest the central bank may not need to rush to raise rates again.
Most economists anticipate the nine-member BOJ Policy Board will decide to maintain the current policy of guiding the unsecured overnight call money rate at around 0.25 percent when they wrap up their gathering on Sept. 8.
The consumer price index, excluding perishables, rose 0.2 percent in July from a year earlier for the second straight monthly increase, but the result was surprisingly lower than the average market projection of a 0.5 percent rise.