According to financial market analysis, the Bank of Japan may adopt a more cautious approach in its future monetary policy decisions. Although interest rate hikes remain a possible option, multiple factors are influencing the Central Bank's decision-making process.

From a political perspective, the recent poor performance of the Japanese Prime Minister in the elections may affect the stability of the government, which will undoubtedly become one of the important factors for the Central Bank to consider. At the same time, Japan is negotiating a trade agreement with the United States, and this external factor also adds uncertainty to the Central Bank's decision-making.

In terms of the economy, the uncertainty of the U.S. tariff policy has also put additional pressure on the Bank of Japan. Considering these factors, it is expected that the Bank of Japan may choose to maintain the current interest rate level at the upcoming July meeting. However, the Central Bank may still maintain its position of gradually normalizing monetary policy.

Nevertheless, some analysts still expect the Bank of Japan to raise interest rates by 25 basis points to 0.75% at the September meeting. In the long term, there is a view that the Central Bank may further raise interest rates to 1.00% in the first quarter of 2026.

These predictions reflect the market's expectations for the Bank of Japan to seek balance in a complex domestic and international environment. The Central Bank needs to find an appropriate balance between stimulating economic growth and maintaining financial stability, while also considering the impact of the global economic situation and the domestic political environment. The future direction of the Bank of Japan's policies will continue to be a focal point of interest for the financial markets.