Goldman Sachs expects the Bank of Japan to keep interest rates unchanged at this meeting.

In a memo published by the American investment bank Goldman Sachs late Wednesday, the bank's analysts provided their expectations for the Bank of Japan's decision on interest rates during the upcoming December meeting, scheduled for Wednesday and Thursday of next week.

According to the memo, Goldman Sachs experts expect that the Bank of Japan will not make any changes to interest rates at this meeting, noting that the central bank of Japan will likely keep its target interest rate steady at 0.25% in the upcoming monetary policy committee meeting.

The key points mentioned by the bank's analysts in this regard are:

• We believe that the Bank of Japan has not yet reached a position where it can confidently evaluate its forecasts regarding inflation, economic growth, and wage growth.
• Under these circumstances, we expect the Bank of Japan to maintain the interest rate at 0.25% during the monetary policy meeting on December 18 and 19.
• Goldman Sachs's baseline scenario is that the Bank of Japan will raise interest rates in January of next year, and it is unlikely that this will be the last increase during this cycle.