Bank of Japan's gauge of potential inf jumped to a three-year high, running well above the 2% target and supporting further policy tightening. The BOJ said September consumer prices excluding fresh food and special factors rose 3.2% YoY, up from 2.6% in August. The central bank raised borrowing costs to 1.25% in September, the fastest tightening since 1990; the new data may strengthen market bets on another near-term rate increase. Markets largely expect the BOJ to leave settings unchanged at Fr

2026-10-27

Bank of Japan's gauge of potential inf jumped to a three-year high, running well above the 2% target and supporting further policy tightening. The BOJ said September consumer prices excluding fresh food and special factors rose 3.2% YoY, up from 2.6% in August. The central bank raised borrowing costs to 1.25% in September, the fastest tightening since 1990; the new data may strengthen market bets on another near-term rate increase. Markets largely expect the BOJ to leave settings unchanged at Friday’s meeting, though many foresee the bank acknowledging potential inf has reached 2%. Earlier Tuesday data showed service producer prices accelerated, partly linked to the Middle East conflict.