> Here's a forecast for a Bank of Japan rate hike this month

Here's a forecast for a Bank of Japan rate hike this month

Follows inflation data from Japan earlier

Friday, 19/07/2024 | 01:32 GMT

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."