Japanese Yen: Rate hike pressure builds on BoJ – Danske Bank

September Consumer Price Index (CPI) data for Japan are due overnight, Danske Research Team notes. October flash Purchasing Managers' Index (PMI) figures are also scheduled for release overnight. Recent Tokyo inflation data indicated strengthening core price pressures. With economic growth remaining resilient and inflationary pressures building, the team expects another Bank of Japan (BoJ) rate hike in December.

December BoJ hike supported by rising inflation

"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.)