BOJ Survey: Japan Business Confidence Improves Amid Inflation Concerns

The Bank of Japan's quarterly survey, known as the 'tankan,' has shown an improvement in Japanese business confidence for the third month in a row. The headline index measuring big manufacturers' sentiment rose to +24 in September from +22 in June.

The BOJ raised interest rates to a 31-year high last month, with its governor signaling that the central bank has entered a new phase focused on preventing inflation from overshooting its target.

Companies expect inflation to hit 2.6% three years from now and 2.5% five years from now, according to the tankan survey, indicating firms see inflation staying well above the BOJ's 2% target for a prolonged period.