Asian Markets Anticipate Rate Hikes as Japan's Inflation Data Surpasses Forecasts

The Asian timezone is set to witness several significant events on Friday, September 18, 2026. One of the most anticipated events is the release of Japanese inflation data for August, which shows Tokyo core CPI rising 1.8% year-over-year in August, beating forecasts of 1.7%. The closely watched core-core measure hit 2.0%, bringing it closer to the BOJ's 2% target.

Goldman Sachs has noted that yen and Nikkei risks are building on a faster BOJ rate path. While the Bank of Japan (BOJ) decision is expected to be in favor of a rate hike, the pace and terminal rate remain uncertain.

The BOJ's statement release time is set at 0300 GMT, but its Governor Ueda will hold a news conference a few hours later at 0630 GMT. Apart from Japan, Reserve Bank of Australia Governor Bullock is also scheduled to speak at 9:30 am local time, which translates to 2330 GMT or 1930 US Eastern time.