Allianz Global Investors' Gregor Hirt stated in a report that the Bank of Japan (BOJ) is expected to keep its key interest rate unchanged at 0.5% during its October meeting, though a rate hike may follow shortly.

The multi-asset Chief Investment Officer (CIO) noted, "However, the BOJ will likely lay the groundwork for the next rate increase in December." He added that a risk scenario would involve delaying the hike until January next year.

According to London Stock Exchange Group (LSEG) data, money markets currently price an 82% probability of rates remaining steady in October, with only an 18% chance of a 25-basis-point hike.