Japanese Yen: BoJ faces mounting rate hike pressure – Danske Bank

Danske Research Team notes that Japan’s September Consumer Price Index (CPI) and October flash Purchasing Managers' Index (PMI) data are due overnight, following recent Tokyo inflation figures that signaled stronger core price pressures. They expect resilient economic growth and mounting inflationary pressures to support another Bank of Japan (BoJ) rate hike in December.

Rising inflation supports December hike

"In Japan, CPI data for September will be released overnight. "

"Core price pressures have shown signs of picking up recently which was markedly reflected in the Tokyo data published earlier this month."

"Inflationary pressures are starting to put more pressure on Bank of Japan (BoJ) to hike rates again."

"PMIs will also be released overnight. So far, the economic recovery has been resilient to higher energy prices, not least due to price caps."

"A solid growth picture points towards another BoJ rate hike in December, as we see it."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)