Express
ING Bank: Inflation May Reshape BOJ's Rate Hike Plans
Summary: According to sources, Japan's CPI data is set to be released on Friday ahead of the interest rate decision, with expectations of a significant drop in December's inflation rate. Analysts at ING Bank suggest that a decline in inflation could prompt the Bank of Japan to reassess its future rate hike plans. 'Strong wage growth ...
According to sources, Japan's CPI data is set to be released on Friday ahead of the interest rate decision, with expectations of a significant drop in December's inflation rate. Analysts at ING Bank suggest that a decline in inflation could prompt the Bank of Japan to reassess its future rate hike plans. 'Strong wage growth and government support measures will keep core inflation above 2%. Once the BOJ confirms that core inflation will remain above 2% and higher than overall inflation, it is likely to take further action in the second half of 2026,' they stated.
