BOJ’s Himino Speech Faces Scrutiny for September Rate Hike Clues as Q2 GDP Growth Slows to 1.1%
Updated
Updated · TradingView · Aug 21
BOJ’s Himino Speech Faces Scrutiny for September Rate Hike Clues as Q2 GDP Growth Slows to 1.1%
1 articles · Updated · TradingView · Aug 21
Summary
Aug. 27 speeches by Deputy Governor Ryozo Himino are the next key test for whether the BOJ could raise rates in September rather than wait for its October outlook update.
1.1% annualized Q2 GDP growth complicates that debate: private consumption, business investment and public works all fell, while all growth came from external demand after imports dropped 1.5%.
Inflation pressure is still building, with July core CPI accelerating to 1.8% and core-core CPI to 1.9%, while Ueda has warned the board must be more mindful of upside price risks.
The BOJ left its policy rate at 1% in an 8-1 vote on July 30-31, but board member Hajime Takata pushed for an immediate hike to 1.25%, underscoring internal pressure to tighten.
Tokyo CPI on Aug. 28 and national CPI data due just before the Sept. 17-18 meeting are likely to shape whether the BOJ judges inflation near its 2% target strong enough to justify another move.