MARKET OUTLOOK - BOJ Appears Ready to Raise Interest Rates in December

Forex - Moody's Analytics economist Stefan Angrick stated that the Bank of Japan appears ready to raise interest rates in December. Angrick emphasized that despite the limited evidence of demand-driven price pressures, the weakness of the yen suggests continued upward pressure on prices. This indicates that inflation may slow down more gradually than previously anticipated. He also noted that the unstable external environment contributes to this situation, stating, "The strengthening of the dollar following Trump's re-election and rising bond yields reflect expectations that his policies will drive inflation up and force the Fed to shelve any plans for interest rate cuts. This contributes to speculation that the yen will increasingly be subjected to overselling. We believe this situation increases the likelihood of the BOJ raising interest rates in December rather than January."