Bank of Japan will resume tightening cycle later this year

Japan’s economy has largely shrugged off global trade tensions and the trade deal reached between the US and Japan has removed a key downside risk. With inflation set to keep overshooting the Bank of Japan’s forecasts, we expect the Bank to resume its tightening cycle by the end of this year.

Field Research

Japan Outlook: BoJ will resume tightening cycle later this year Japan Weekly: BoJ can’t shrug off strong inflation for much longer Trade deal points to resumption of BoJ tightening cycle this year