Japanese data shows inflationary pressures are firm and that exports remain resilient despite tariffs. An upbeat flash purchasing manager’s index suggests the economy is on the recovery path. While these outcomes favour a Bank of Japan rate hike in December, government pressure to keep policy loose might delay a move until next year
Bank Indonesia and the People’s Bank of China are both expected to maintain current interest rate levels. Key releases include Japan's GDP, trade figures, and inflation, Taiwan's export orders and Singapore's GDP
Higher-than-expected Japanese inflation in October, together with improvements in production and retail sales, suggests growth is bottoming out toward quarter-end, while price pressures continue to intensify. The Bank of Japan may consider an earlier rate increase
The Bank of Korea is expected to leave rates unchanged, while Bangko Sentral ng Pilipinas is seen easing. Other highlights include Tokyo inflation, India’s second-quarter GDP and China’s industrial profits
Japan’s July consumer price inflation data was broadly in line with the market consensus. Headline inflation slowed thanks to falling energy and utility prices. Yet, core prices remain sticky and well above 3%. We believe core price trends will prompt the BoJ to hike rates as early as October
