Asia FX muted, dollar fragile as CPI data boosts Sept rate cut bets
Investing.com -- A potential increase in interest rates may be on the horizon for the Bank of Japan (BOJ) as early as May, according to Reuters.
The report stated that rising wages and continued increases in food costs are causing inflationary pressure. This could encourage BOJ board members to discuss another rate hike.
The decision to raise rates at the April 30-May 1 meeting, or to wait until later in the year, will be influenced by multiple factors. These include not only the outlook on prices but also the impact of U.S. President Donald Trump’s policies on financial markets.
The BOJ is expected to maintain its current policy at the upcoming March 18-19 meeting. The bank recently raised interest rates to 0.5% from 0.25% at its previous meeting in January.
Market predictions largely anticipate the next rate hike to occur in the third quarter of the year.
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