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.
The Bank of Japan (BoJ) is facing increasing pressure to raise interest rates, according to Danske Bank's research team. With Japan's September Consumer Price Index (CPI) and October flash Purchasing Managers Index (PMI) figures due overnight, the team anticipates resilient economic growth and mounting inflationary pressures to prompt another BoJ rate hike in December.
Core price pressures have been on the rise, with Tokyo data reflecting this trend. Inflationary pressures are putting more strain on the BoJ to hike rates once again. Despite higher energy prices, the economic recovery has been resilient, primarily due to price caps. The solid growth outlook suggests another BoJ rate hike in December.
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