Fed Tightening Bias Gives BOJ More Room for Hawkish Signaling

Dow Jones15:52

0752 GMT - The Bank of Japan is likely to deliver a markedly hawkish hold Friday, says Krishna Bhimavarapu at State Street Investment Management. Broadening inflation, yen weakness and the Fed's renewed tightening bias give the BOJ greater room to signal another hike. December is a realistic window, but it shouldn't be treated as a done deal, the economist says. Inflation is only one side of the equation: Whereas coming U.S. growth data will likely back the case for Fed tightening at a determined pace, Japan's economy seems to be losing some steam. Consumption has softened, and weaker export volumes raise the risk of a disappointing 3Q GDP print, Bhimavarapu says. "That makes the Nov. 16 GDP release an important piece of information to confirm before markets fully price a December move."

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment