Japan's Inflation Pick-up Clears Way for BOJ Rate Hike Next Month
Dow Jones
Aug 21
0109 GMT - Japan's inflation pick-up clears the way for a BOJ rate hike next month, Capital Economics' Abhijit Surya says in commentary. Government data released earlier showed Japan's consumer prices, excluding fresh food, climbed 1.8% in July from a year earlier, compared with June's 1.6% increase, the senior APAC economist notes. "With underlying price pressures intensifying, we're growing more confident in our view that the Bank of Japan will hike rates again at its meeting next month," Surya says. Capital Economics expects the BOJ to raise rates by 25 bps at its September meeting, and eventually increase rates to peak of 2% by end-2027.
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