BOJ Hints at Quicker Rate Hikes as Japan's Manufacturing Slows
Japan's manufacturing expansion slowed down in September, reaching its lowest level in six months. The final S&P Global Japan Manufacturing PMI for September came in at 54.1, marking a slight decrease from August's 54.9.
The sector still remains in growth territory despite the slowdown in production and new orders. However, this moderation may signal that the economy is nearing its capacity limits, prompting policymakers to reassess their monetary policy stance.
The Bank of Japan (BOJ) has signaled a more hawkish approach, with several policymakers advocating for accelerated rate hikes to bring interest rates closer to the central bank's terminal target in the near term. This move is seen as a response to rising inflation and economic growth concerns.