BOJ Shifts towards Aggressive Inflation Fighting Posture Predicted for December

Japan's price expert, Tsutomu Watanabe, predicts that the Bank of Japan (BOJ) may shift to an inflation-fighting posture from its current tolerant stance as soon as December. This change would mean an acceleration in interest rate hikes.

The third wave of inflation is expected to be more modest than the previous two, with consumer inflation excluding fresh food and fuel peaking near 3% around March next year, Watanabe said.

The first wave was triggered by the Ukraine war, followed by a second wave driven by domestic wage hikes and rising rice costs. The third wave is attributed to the Middle East conflict.