While headline inflation will jump in February due to base effects from the launch of energy subsidies, underlying inflation will continue to moderate, with services inflation set to fall below 2% before long. In contrast to the analyst consensus, which foresees several rate hikes, we only forecast one rate hike by the Bank of Japan by the end of next year.
We’re resending this publication to include a link to our upcoming Asia Drop-in on 25th January. We’re discussing China’s missing stimulus, the Asian monetary policy outlook and much more. Register here for the 20-minute online briefing.
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