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BOJ May Signal Underlying Inflation Has Hit 2% Goal, Sources Say
The central bank is expected to cite higher prices and steady wage gains as support for a possible December rate increase, sources said.
- On Tuesday, sources said the Bank of Japan may indicate this month that underlying inflation has roughly hit its 2 per cent target, signaling readiness to raise interest rates again in coming months.
- Governor Kazuo Ueda raised the key rate to a 31-year high last month, shifting policy focus toward preventing underlying inflation from overshooting its target. The bank prioritizes underlying price trends excluding temporary factors in policy formulation.
- Recent data including Tokyo consumer inflation and the central bank's quarterly tankan business survey heighten the BOJ's conviction on price trends. August core CPI rose 1.7%, supported by steady wage gains and crude oil price increases.
- An announcement would reinforce market expectations of a December interest rate hike, signaling the BOJ's readiness to act in short intervals. The bank will express this view in its quarterly Outlook for Economic Activity and Prices report after the Oct 29-30 meeting.
- Despite inflation signals, many central bank officials remain cautious about delivering another rate hike this month. They prefer to gauge additional data on how past increases have affected domestic financial conditions before the next policy decision.
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12 Articles
12 Articles
The Economic TimesReposted by 
Times of India
Times of IndiaGlobal Market: BOJ seen nearing 2% inflation target as markets eye December rate hike
The Bank of Japan may signal later this month that underlying inflation has reached its 2% target, strengthening expectations for a December rate hike. While policymakers remain cautious after recent increases, steady wages, rising prices and yen weakness could support further tightening as the BOJ gradually normalises monetary policy.
·Mumbai, India
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BOJ may signal underlying inflation has hit 2% goal, sources ...
·London, United Kingdom
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Channel News Asia+2 Reposted by 2 other sources
BOJ may signal underlying inflation has hit 2% goal, sources say
TOKYO, Oct 6 : The Bank of Japan may signal this month that underlying inflation has roughly hit its 2 per cent target, three sources familiar with its thinking said, highlighting its readiness to raise interest rates again in the coming months.Any such announcement would largely be symbolic, but it would rei
·Singapore, Singapore
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Coverage Details
Total News Sources12
Leaning Left0Leaning Right2Center5Last UpdatedBias Distribution71% Center
Bias Distribution
- 71% of the sources are Center
71% Center
C 71%
R 29%
Factuality
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