Fed Rate Hike Prospects Cool Down as BOJ Bets Heat Up

The Federal Reserve's rate hike prospects have cooled down following Wednesday's U.S. CPI data, which was largely in line with expectations.

Coupled with softer-than-expected July nonfarm payrolls, it has dampened money-market bets on a September Fed rate hike.

In contrast, the Bank of Japan's (BOJ) rate hike prospects have heated up after Thursday's Japanese wholesale inflation data revealed a 7.2% year-on-year rise in July.

The BOJ is expected to raise interest rates due to strong demand induced by the AI boom and higher raw-material costs from the Middle East war.