According to the latest published minutes of the Bank of Japan's monetary policy meeting in June, most members expressed that the inflation outlook may exceed expectations, but also emphasized that there is considerable uncertainty. The discussion on whether inflation is a short-term phenomenon is expected to continue until July.

Although the Bank of Japan raised its inflation expectations in July, Governor Kazuo Ueda's stance seems to have softened. He specifically pointed out that starting next year, the pace of price increases is expected to slow down, which may be the main reason for his change in attitude.

It is worth noting that Japan and the United States completed trade agreement negotiations in July, but the specific impact of this agreement on the economy still needs further assessment. A preliminary analysis of this may be included in the summary of opinions from the monetary policy committee in July.

Given that Ueda and his comments have recently appeared less aggressive, market analysts generally believe that the Bank of Japan may not take any interest rate hike actions this year. This judgment is based on the current economic situation and the change in the attitude of policymakers.

The future policy direction of the Bank of Japan will continue to be influenced by multiple factors such as the global economic environment, domestic inflation pressures, and the yen exchange rate. Policymakers need to find a balance between promoting economic growth and controlling inflation to ensure the stable development of the Japanese economy.