According to the report from the Tencent Finance APP, Japan's main inflation indicators saw their first slowdown in five months in September. Data released by the Ministry of Internal Affairs and Communications of Japan on Friday showed that Japan's national core CPI, excluding fresh food, rose by 2.4% year-on-year in September, lower than the previous value of 2.8%, but slightly higher than the market's expected 2.3%; Japan's national CPI rose by 2.5% year-on-year in September, lower than the previous value of 3%.

The slowdown of this inflation indicator in Japan is largely due to government utility subsidies. Therefore, if there are no other signs indicating a weakening inflation trend, this may have a limited impact on the Bank of Japan's policy path.

At the same time, the inflation index excluding energy costs and fresh food prices rose by 2.1% year-on-year, higher than the previous value of 2.0%; service prices, seen by the Bank of Japan as a key indicator of price trends, rose by 1.3% year-on-year in September, lower than the previous value of 1.4%.

The Bank of Japan will announce its latest interest rate decision on October 31. The market currently expects the Bank of Japan to maintain the benchmark interest rate at 0.25%. After Japanese Prime Minister Shizo Abe stated earlier this month that "the Japanese economy is not yet ready for another rate hike by the Bank of Japan," some market participants have postponed expectations for the Bank of Japan's next rate hike to January next year.

Bank of Japan board member Seiji Adachi stated on Thursday that in the gradual process of raising interest rates, caution is needed to raise rates as slowly as possible while maintaining an accommodative financial environment until the trend reaches 2%. Adachi Seiji emphasized the need to gradually raise the benchmark interest rate, with his remarks likely reinforcing the market's view that the Bank of Japan will maintain the status quo at this month's policy meeting.

The Bank of Japan has consistently maintained its position that if inflation evolves in line with its forecast, it will further reduce monetary easing policies and raise interest rates. Economist Taro Kimura stated: "The Bank of Japan is monitoring the performance of the US economy before further raising interest rates. We believe that the Bank of Japan will be able to confirm a soft landing of the US economy before the policy meeting in January next year."