07:03 AM EDT, 10/30/2024 (MT Newswires) -- The Bank of Japan's two-day monetary policy meeting concludes tomorrow with a statement at 10:30 p.m. ET Wednesday on the key interest rate and a subsequent press conference, said Commerzbank.

The bank doesn't expect any change in the key rate. As a result, the direct impact of the meeting on the currency market is likely to remain "modest."

Just last week, BoJ Governor Kazuo Ueda said that there was no rush to decide on further rate hikes, and the timing of this meeting between last Sunday's parliamentary election in Japan and the United States presidential election next week is probably also not ideal if you want to surprise the markets, stated Commerzbank.

Nevertheless, the meeting isn't entirely "uninteresting," according to the bank. After all, Japan's central bank will present new forecasts and a new assessment of economic developments.

Given that inflation has tended to surprise on the downside in recent months, it will be of particular interest to see how the path of inflation is now assessed. Financial markets no longer expect a rate hike in Japan in the near future, added Commerzbank.

The first full rate hike of 25 basis points isn't priced in until June next year. It will be interesting to see how much the BoJ will be pushing back on this market view this week, noted the bank.