Japanese Yen: Pressure builds on BoJ to raise rates – Danske Bank

Resilient economic growth and building inflationary pressures should support another Bank of Japan (BoJ) rate hike in December, according to Danske Research Team. The team notes that Japan’s September Consumer Price Index (CPI) and October flash Purchasing Managers' Index (PMI) readings are due overnight, after recent Tokyo inflation data indicated strengthening core price pressures.

Does Rising Inflation Support a December Rate Hike?

"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."

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

"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.)