ING: Inflation Could Reshape Bank of Japan's Rate Hike Plan

Odaily News Japan's CPI data will be released ahead of Friday's interest rate decision, and it is expected to show a significant drop in the inflation rate for December. Analysts at ING stated that if inflation shows a decline, it might prompt the Bank of Japan to reassess its future rate hike plans. "Strong wage growth and government assistance measures will keep the core inflation rate above 2%. Once the Bank of Japan confirms that the core inflation rate will sustainably remain above 2% and higher than the overall inflation rate, it is likely to take the next step at some point in the second half of 2026." (Jin10)