Japan Inflation Softness Temporary, Won't Alter BOJ Rate Cycle -- Market Talk

Dow Jones03-24

0346 GMT - The BOJ will likely look through the recent inflation slowdown and focus on price risks, ING's Min Joo Kang says. Initial wage negotiations were encouraging, showing little impact from the Middle East conflict so far, the economist says. Declines in flash PMIs reflect recent oil-supply shocks and a drop in new orders, which does add to concerns about the outlook. But Kang notes that the headline figures remained above 50, suggesting that businesses see geopolitical risks as temporary. Sticky core inflation, PMIs and wage negotiations raise the odds of an April hike, but the timing is uncertain. Mideast developments will play a crucial role in the BOJ decision. If conditions stabilize and there is no evidence of falling production or consumption, an April hike will be even more likely. (fabiana.negrinochoa@wsj.com)

 

(END) Dow Jones Newswires

March 23, 2026 23:46 ET (03:46 GMT)

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