Svmuu News: Nomura Research Institute wrote in a research report that Bank of Japan (BOJ) currently faces an environment where multiple factors are intertwined, making policy decisions particularly complex. This also highlights the importance of central bank communication.Going forward, Bank of Japan (BOJ) needs to explain more clearly how rate hikes will affect the economy—compared to historical experience—and what effects are expected. At the same time, Bank of Japan (BOJ) must also clearly articulate the objectives of its tightening policy. To date, Bank of Japan (BOJ) has described policy tightening as an “adjustment to the degree of monetary easing.” If Bank of Japan (BOJ) incorporates “mitigating potential upside risks to inflation” and “curbing inflation expectations” into its rate hike objectives, this will influence the pace of future rate hikes as well as Bank of Japan (BOJ)’s communication strategy. Whether this rate hike will bolster market and public confidence in Bank of Japan (BOJ) will largely depend on the performance of the Deputy Governor’s press conference following the policy meeting. (Jin Shi)