The Japanese inflation data is here from earlier:
Japan data – June CPI Headline 2.8% y/y (vs. 2.9% expected)
The BoJ meet on July 30 and 31 and this data will go into the mix for their decision. The Bank is widely expected to leave its short term rate unchanged but trim JGB buy plans further.
Reuters have a recap posted of the data, including this take:
“While the Bank of Japan will still see the July Tokyo CPI
before its meeting later this month, the June nationwide figures
support our forecast of another rate hike at that meeting,” said
Marcel Thieliant, head of Asia-Pacific at Capital Economics.
“Looking ahead, we expect underlying inflation to remain
around 2% until early-2025, which we think will prompt the Bank
of Japan to hike rates both this month and in October.”
This article was written by Eamonn Sheridan at www.forexlive.com.
