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Japan business mood hits 4-year high, keeps BOJ rate-hike view alive
Big manufacturers’ confidence rose to +15 in December, supported by rising sales prices and strong demand despite concerns about U.S. tariffs and soft consumption.
- On December 15, 2025, the Bank of Japan's tankan showed big Japanese manufacturers' sentiment hit a four-year high, reinforcing expectations of a rate hike next week.
- Rising sales prices and stronger capex plans drove big firms to expect capital expenditure growth of 12.6% in the current fiscal year ending March 2026.
- Survey data revealed the headline index for big manufacturers rose for a third quarter, the index for big non-manufacturers held steady, and the job conditions index showed the tightest labour market since 1991.
- Sources told Reuters that the Bank of Japan is likely to raise its short-term policy rate to 0.75% from 0.5% at its December 18-19 meeting, with board members signaling readiness for a hike.
- Looking ahead, firms worry that business conditions will worsen three months ahead due to higher U.S. tariffs and soft consumption, while analysts expect growth to rebound this quarter despite a recent economic shrinkage.
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27 Articles
Associated Press News+7 Reposted by 7 other sources
Quarterly 'tankan' survey shows slight improvement as Bank of Japan weighs a rate hike
A quarterly survey of major Japanese manufacturers shows business sentiment improving to its best level in four years, even after President Trump raised tariffs on goods from the U.S. ally to a baseline level of 15%.
·United States
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Japan business mood hits 4-year high, keeps BOJ rate-hike view alive
Big Japanese manufacturers' business sentiment hit a four-year high in the three months to December, a closely watched survey showed on Monday, reinforcing market expectations the central bank will raise interest rates next week.
·United Kingdom
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The New York Ledger
The New York LedgerGBP/JPY tumbles to near 207.00 as Yen gains on strong business confidence
The GBP/JPY pair is down 0.5% around 207.30 during the European trading session. The pair faces intense selling pressure as the Japanese Yen (JPY) outperforms across the board, following the release of the Japan’s Tankan Q4 business sentiment data.
Coverage Details
Total News Sources27
Leaning Left6Leaning Right5Center6Last UpdatedBias Distribution35% Left, 35% Center
Bias Distribution
- 35% of the sources lean Left, 35% of the sources are Center
35% Center
L 35%
C 35%
R 30%
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