Japanese household spending in October declined at a slower pace than expected, indicating a slight improvement in consumer behavior. However, overall consumption trends continue to be weak, reflecting ongoing economic challenges.

In response to these conditions, the Bank of Japan is expected to raise interest rates as part of its strategy to normalize monetary policy after a period of accommodative measures. This move aims to address inflationary pressures and stabilize the economy, signaling a shift in the central bank's approach to managing economic growth.