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Capital Economics: Japan PMI Supports Bank of Japan to Resume Rate Hike in October
Summary: According to reports, the latest PMI data from Japan supports Capital Economics' view that the Bank of Japan may raise interest rates sooner rather than later. Japan's composite PMI rose to a four-month high of 51.4 in June. Both manufacturing and services PMI saw slight increases in June. Capital Economics economist Abhijit Surya noted that ...
According to reports, the latest PMI data from Japan supports Capital Economics' view that the Bank of Japan may raise interest rates sooner rather than later. Japan's composite PMI rose to a four-month high of 51.4 in June. Both manufacturing and services PMI saw slight increases in June. Capital Economics economist Abhijit Surya noted that the manufacturing output index indicates a resurgence in industrial production, while new export orders suggest moderate growth in sales. The services PMI is well above historical average levels, consistent with significant growth in consumer spending. In conclusion, it is expected that the Bank of Japan has reason to raise interest rates in October, rather than in early next year as many had anticipated.
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Link: Capital Economics: Japan PMI Supports Bank of Japan to Resume Rate Hike in October [Copy]
