Back to today’s briefing

Story perspectives

Bank of Japan Delays Rate Hike Amid Inflation Concerns

1/9/2025

42 10

Summary

Story summary

The Bank of Japan may postpone its interest rate hike until March amid uncertainties over U.S. policies.
Former governor Haruhiko Kuroda anticipates gradual rate increases as inflation nears the 2% target, aided by rising wages.
Wage increases are becoming more widespread, suggesting improving conditions for a near-term rate hike.
Despite this, real cash earnings have fallen, raising concerns about inflation outpacing wage growth.

1 of 1

Story summary

The Bank of Japan may postpone its interest rate hike until March amid uncertainties over U.S. policies.
Former governor Haruhiko Kuroda anticipates gradual rate increases as inflation nears the 2% target, aided by rising wages.
Wage increases are becoming more widespread, suggesting improving conditions for a near-term rate hike.
Despite this, real cash earnings have fallen, raising concerns about inflation outpacing wage growth.