Japanese yen weakness exacerbates inflation risks, and the Bank of Japan is open to accelerating its rate-hike pace.

robot
Abstract generation in progress
Golden Finance reported on July 22 that, according to insiders, ongoing weakness in the yen has intensified the risk of upside inflation, and Bank of Japan officials are open to accelerating the pace of rate hikes, which could be faster than economists’ general expectations. Insiders said officials know that many observers of the Bank of Japan expect it to hike rates about once every six months, but if needed they are also willing to hike earlier; there is currently no pre-set rate-hike schedule. The market broadly expects the Bank of Japan to keep policy unchanged at its July 31 policy meeting. Previously, the central bank raised its benchmark rate to 1% last month, the highest level in 31 years. Most observers believe that last month’s hike will prompt the Bank of Japan to hike again in December. Officials said that, given potential inflation is nearing the 2% target set 13 years ago, it is especially necessary to closely watch the risk of upside inflation.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned