Bank of Japan’s June summary shows broad support for rate increases amid deflation warnings and rising inflation pressures.
The Bank of Japan’s June meeting summary revealed growing consensus for faster rate hikes, with markets pricing another increase by year-end to approach 1.75%. The shift follows persistent inflation signals, including a 3.3% rise in May services PPI driven by fuel costs and freight expenses.
Japan’s core inflation remains elevated, contrasting with Australia’s mixed CPI data, where May headline inflation undershot at 4% y/y but core inflation exceeded forecasts at 3.6%. The PBOC set the USD/CNY midpoint at 6.8195, weaker than the 6.7 estimate, adding to regional currency volatility.
Equity markets reacted positively to Samsung’s $65bn buyback plan and new chip cluster talks, while BofA raised its Nikkei target to 76,000 on AI demand and easing Hormuz tensions.