Bloomberg News with the report:
- Bank of Japan officials are seeing slightly stronger inflation than they had anticipated earlier this year, which could pave the way for future rate hike discussions—especially if global trade tensions ease, according to sources familiar with the matter.
- While the central bank is expected to hold its benchmark rate steady at 0.5% at its upcoming meeting next week, policymakers are watching tariff developments closely.
- If trade measures prove less disruptive than feared, that could support a case for tightening policy, the sources said.
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Some officials believe the recent uptick in inflation reflects a shift in corporate pricing behavior, with sharp increases in rice prices reinforcing inflation expectations among consumers.
- For now, attention is expected to focus on the BOJ’s bond-buying plans, with markets watching for any signals about how fast the bank will slow its asset purchases from next spring.
This article was written by Eamonn Sheridan at www.forexlive.com.
