JPMorgan: The Bank of Japan may still raise interest rates in October, and the yen may see a rebound.

On October 23, Jin10 reported that Morgan Stanley analyst Junya Tanase pointed out in a research report that the recent market expectation for the Bank of Japan to raise interest rates at this month's meeting may be overly cooled, and the yen is expected to regain strength. Although the election of Sanae Takaichi as the ruling party leader has fueled market expectations for an easing policy, the Bank of Japan's policy guidance has not changed, and a rate hike on October 30 is still within the realm of possibility. The bank expects that if the BOJ decides to raise interest rates next week and its policy communication raises terminal interest rate expectations, the USD/JPY exchange rate may fall to 142.00 by the end of the year (currently trading around 152.60). Tanase added, “If the above conditions are not met, it may be necessary to adjust the USD/JPY exchange rate expectations upward.”