Bank of Japan to signal more rate hikes as price pressures build

From channelnewsasia.com

The Bank of Japan is set to keep interest rates steady on Friday but leave scope for further hikes with hawkish communication, as the economy faces mounting inflationary pressure from the Middle East war, a weak yen and robust global AI demand. The central bank, however, will likely stay ambiguous on the pace and timing of future rate hikes as it awaits data on the degree to which surging producer prices from the energy shock spread to the broader economy. Analysts say Governor Kazuo Ueda faces the competing demands of talking down the yen bears through hawkish communication while not antagonising a government seen ... (full story)