{
  "id": 11102573,
  "title": "Japan's patchy business mood takes pressure off BOJ for immediate hike",
  "url": "https://urgent.news/2026/10/01/japans-patchy-business-mood-takes-pressure-off-boj-for-immediate-hike-11102573",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-01T00:12:18.000Z",
  "source": {
    "name": "CNA - Business",
    "slug": "cna-business",
    "url": "https://www.channelnewsasia.com/business/japans-patchy-business-mood-takes-pressure-boj-immediate-hike-6422946"
  },
  "original_language": "en",
  "account": "TOKYO, October 1 - Japanese manufacturers' confidence surged to an eight-year high in July-September, but the mood of non-manufacturers declined, as per a Bank of Japan (BOJ) survey. This mixed outlook for the economy may reduce the likelihood of consecutive rate hikes this month. Despite elevated corporate inflation expectations, they did not accelerate compared to three months ago. The tankan survey revealed that manufacturers' sentiment improved due to strong global demand for AI and reduced supply constraints, while weak consumption of durable goods may have hindered sentiment. Economist Takeshi Minami from Norinchukin Research Institute noted that while the survey suggests further rate hikes are not imminent, they are not entirely ruled out. The BOJ increased its policy interest rate to a 31-year high of 1.25% last month to counter inflation caused by a supply shock and a weak yen. The headline index measuring manufacturers' business sentiment reached +24 in September from +22 in June, surpassing the +25 average analyst estimate. Non-manufacturers' sentiment, however, fell to +35 from +37 in June, the first decline in five quarters. Service-sector firms faced rising raw material and labor costs, leading to falling sales as consumers resisted price hikes. Typhoons and prolonged rain affected restaurants and hotels, contributing to the decline. Both manufacturers and non-manufacturers predicted worsening business conditions in the next three months, indicating that geopolitical tensions, such as the Middle East war, are weighing on sentiment. The BOJ's governor, Kazuo Ueda, highlighted elevated inflation expectations as a reason to believe that underlying inflation is nearing the bank's 2% target. However, the survey showed that companies expect inflation to be around 2.6% in three years and 2.5% in five years, which is not significantly higher than the 2% target. This lack of acceleration in inflation expectations suggests that immediate rate hikes may not be warranted. The indices on corporate funding conditions remained largely unchanged from three months earlier, indicating that the financial environment remains relatively loose despite past rate hikes. The survey, conducted from August 26 to September 30, received responses from around 70% of firms, before the BOJ raised its policy rate on September 18.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "Channel News Asia",
        "title": "Japan business mood improves, tankan survey shows",
        "url": "https://urgent.news/2026/10/01/japan-business-mood-improves-tankan-survey-shows-11067497",
        "published": "2026-10-01T00:12:18.000Z"
      },
      {
        "outlet": "Investing.com",
        "title": "Japan business mood improves, tankan survey shows",
        "url": "https://urgent.news/2026/10/01/japan-business-mood-improves-tankan-survey-shows",
        "published": "2026-10-01T00:18:49.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}