world-economy

BOJ Inflation Remains Elevated, September Rate Rise Expected

The Bank of Japan's core inflation measure stayed above its 2% target in recent data, reinforcing market expectations for a September interest rate increase. Market participants widely anticipate the move will mark the beginning of a tightening cycle, with some observers projecting a follow-up hike as soon as January. Meanwhile, central banks globally face divergent inflation pressures. Hungary's central bank delivered its third consecutive rate cut after inflation fell to decade lows. Mexico's economy showed signs of recovery with inflation rising above target levels, supporting bets for steady rates. Australia's Reserve Bank held rates steady, noting that elevated inflation was gradually easing while labor market softness provided room to monitor developments before acting.