Japan’s Producer Price Gains Stay Elevated, Backing BOJ Hikes
Markets expect a quarter-point move as wholesale inflation stays elevated and policymakers give few clues on how far tightening will go.
- Japan's wholesale inflation remained elevated in August, rising 7.6% from a year earlier, though prices fell 0.2% on a monthly basis, data released on Friday showed.
- Rising fuel costs and higher import prices from a weak yen have added pressure to the economy, forcing companies to pass on increased expenses for energy and shipping to customers.
- The Bank of Japan is widely expected to raise its benchmark interest rate to around 1.25% at next week's policy meeting, following recent hawkish communication from the central bank.
- On Thursday, BOJ board member Kazuyuki Masu said underlying inflation is nearing 2%, while analysts expect rates to hit 1.75% by the second quarter of 2027 amid persistent price pressures.
- Some 93% of economists expect another rate move by January, as many within the central bank see conditions aligning for a faster pace of tightening given moderate economic recovery.
12 Articles
12 Articles
BOJ set to lift rates next week but offer few clues on terminal ...
BOJ set to lift rates next week but offer few clues on terminal, sources say
TOKYO, Sept 11 : The Bank of Japan is set to raise interest rates next week, most likely by 25 basis points, and may signal faster future tightening if price pressures heighten risks of an inflation overshoot, said four sources familiar with its thinking. A hike to 1.25 per cent would bring the BOJ’s policy […]
Bank of Japan Set to Raise Interest Rates to 1.25% in September as Yen and Global Markets Brace for Impact
Japan’s central bank is preparing to take another step away from the extraordinary monetary accommodation that defined its economy for decades. The Bank of Japan is widely expected to raise its key interest rate by 0.25 percentage point at its September meeting, lifting the policy rate to 1.25% and marking another decisive stage in the […]
Japan’s PPI Inflation Cools, but BoJ Still Has a 7.6% Problem - ActionForex
Japan’s Producer Price Index eased from a revised 7.7% to 7.6% y/y in August, but remained above the 7.4% consensus, keeping wholesale inflation at an elevated level. On a monthly basis, PPI swung from a revised 0.4% increase to a 0.2% decline, weaker than expectations for no change. The monthly fall was led by electric […]
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- 83% of the sources are Center
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