ING's latest ahead of the Bank of Japan meeting:
- We believe that the recently released inflation and labour data continue to justify the Bank of Japan's rate normalisation.
- We are expecting a 15bp hike tomorrow, but the decision is still up in the air.
- Currently, the market is pricing in a 60% chance of a hike.
- In our view, the Bank of Japan is convinced that the virtuous cycle between wages and consumption is strengthening.
- However, real wage growth has remained in negative territory, which could lead the BoJ to keep policy rates on hold.
The BoJ is meeting today and tomorrow. The statement is expected sometime between 0230 and 0330 GMT on Wednesday, July 31, 2024
- that's 2230 - 2330 US Eastern time on Tuesday, July 30, 2024
Bank of Japan Governor Ueda follows up with his press conference @ 0630 GMT (0230 US Eastern time).
