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Related tickers and likely impact
USD/JPY
▼ Likely negativeRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/29/2026 | 157.689 |
| Change that session | -0.09% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Japan inflation accelerates , paving way for interest rate hike
Japan's inflation accelerated, driven mainly by higher prices for processed foods amid soaring energy costs from the conflict in the Middle East. Excluding fresh produce, inflation rose to 2.1% from 1.7% in August, in line with market expectations and above the BoJ's 2% target; excluding both food and energy, it was 2.4%. Capital Economics said underlying inflation is back above the 2% target and that the BoJ may revise up its inflation forecasts at its October meeting, setting the stage for another hike in December. The BoJ raised rates in mid-September. The government plans to cut the consumption tax on food from 8% to 1% for two years starting April, which media reports say will cost ¥10 trillion (US$63 billion) in lost tax revenue.
- Bank of Japan is expected to hold rates this week — but stay hawkish: CNBC survey
A CNBC survey of 16 economists and analysts found all expect the Bank of Japan to keep its policy rate at 1.25% at the end of its two-day meeting on Friday. Most expect a rate hike in December or January next year as domestic inflation and wages keep rising, with core inflation excluding fresh foods at 2.1% and inflation-adjusted wages up 1.5% from a year earlier. Some analysts see no clear sign inflation is accelerating enough to justify consecutive hikes, and say the policy board may lack consensus given the fragile domestic bond market. The 10-year JGB yield is expected to reach 3% to 3.1% by year-end, up from 2.809%, while the terminal rate is seen at 1.75% to 2% by around mid-2027.
- Japan Core Inflation Exceeds BOJ Target , Cements Near - Term Rate Hike Chance
Japan's annual core consumer inflation exceeded the Bank of Japan's 2% target in September for the first time in nine months, data showed Friday, a sign of broadening price pressure that strengthens the case for a near-term rate hike. Higher fuel costs from the prolonged Middle East conflict, elevated import prices from the weak yen and price pressures from strong AI demand are blunting the effect of government fuel subsidies. Core CPI, which excludes fresh food but includes fuel, rose 2.1% from a year earlier, matching forecasts, after 1.7% in August. The index that also strips out fuel, which the BOJ watches more closely as a gauge of demand-driven pressure, rose 2.4% after 1.9% in August. The BOJ raised its key rate to a 31-year high of 1.25% last month; it is expected to hold rates next week but may raise its inflation forecast and signal readiness to keep lifting borrowing costs, according to Reuters sources.
- Japan Core Inflation Reaches 2 . 1 % Ahead of Bank of Japan Meeting
Japan's core consumer inflation, excluding fresh food, rose to 2.1% in September from 1.7% in August, the highest this year and again above the BOJ's 2% goal. Headline inflation was also 2.1%, while the BOJ's preferred measure excluding energy rose 2.4%, with durable goods and utility charges adding upward pressure. Analysts linked part of the pressure to a weaker yen and pricier imports, and Capital Economics' Abhijit Surya said energy costs may still be feeding through the supply chain. The BOJ raised its overnight call rate by 25 basis points to about 1.25% in September, its highest in three decades, and Surya expects another increase in December. The BOJ's next policy meeting is set for Oct. 29-30, while the Lower House is debating a proposal to cut the food consumption tax from 8% to 1% for two years.
- Japan core inflation in September surges to its highest this year at 2.1%
Japan's core inflation rose to 2.1% in September, its highest this year and above analysts' expectations, up from 1.7% in August. Higher import costs from a weak yen and indirect effects of energy prices were cited as drivers, even as rice prices fell 20.6% year on year. Core-core inflation, which excludes fresh food and energy, was 2.4%, and services inflation rose from 1.2% to 1.5%. Capital Economics forecasts another Bank of Japan rate hike in December, after the 25 basis point increase in September took rates to a three-decade high of 1.25%. Finance Minister Satsuki Katayama said Japan was on the cusp of sustained inflation driven by rising wages and saw no gap between the government and BOJ views on the tax cut plan.
- Global inflation debate puts BOJ rate - hike pace in spotlight
The Bank of Japan may face renewed pressure to speed up interest rate hikes before its October 29-30 policy review, after global inflation concerns from the Iran war and AI-driven demand dominated the IMF meetings in Bangkok. Sources say many BOJ officials prefer to hold rates steady in October after raising them in September, but analysts expect the bank to drop hawkish signals that leave room for a December hike. The policy rate stands at 1.25%, leaving real borrowing costs negative while inflation hovers near the 2% target, and a weak yen is raising import costs. U.S. Treasury Undersecretary Erin Browne urged Japan to keep tightening to prevent a disorderly yen decline, and BOJ board member Junko Koeda warned against being overly cautious given upside inflation risks.
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