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0508 GMT - Taiwan's June inflation likely remained above the 2% level, which is closely watched by the central bank, for a second consecutive month. Headline CPI likely rose 2.25% on year after a 2.2% gain in May, according to a Wall Street Journal poll of six economists, whose inflation estimates range between 2.1% and 2.4%. Although oil prices have eased, cost pass-through from upstream producers to downstream manufacturers and retailers is expected to persist, DBS economists say in a note. A low base from last year likely also pushed headline inflation higher, Barclays economists said. The inflation print in the next few months will be critical as Taiwan's central bank has tilted slightly hawkish. Both ANZ and DBS expect Taiwan's central bank to deliver a rate hike in September.(sherry.qin@wsj.com)
0503 GMT - The Bank of Japan's output gap estimates for the first quarter showed a stable positive trend, a mechanism that helps drive inflation higher, says SMBC Nikko Securities economist Yoshimasa Maruyama. The reading could be seen as justifying further interest rate hikes, he says. However, the size of the positive gap didn't expand, suggesting there is little immediate need to accelerate monetary tightening, he adds. "Any future need to speed up the pace or increase the scale of additional rate hikes would likely stem from a lagged but pronounced pass-through of inflationary pressures caused by the Middle East situation or rising inflation expectations." (megumi.fujikawa@wsj.com)
(END) Dow Jones Newswires
July 06, 2026 01:08 ET (05:08 GMT)
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