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.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services