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US growth slows as inflation pressures persist

As global markets brace for a slowdown in US growth, attention turns to Japan, where inflation pressures are already driving key decisions from the country’s central bank. The Bank of Japan’s decision to maintain its short-term interest rate has continued to spark discussion among market participants. This move comes in the wake of persistent inflation, which has now reached a ten-month high with the National Core CPI rising. Governor Ueda has signalled that the BOJ is prepared to raise rates further if inflation continues to climb, particularly as wage growth remains strong and private consumption drives the economy forward. For traders, the implications of the BOJ’s policies are clear. As Japan diverges from the Federal Reserve, which is expected to lower rates, the interest rate differential between the two economies may narrow. This shift could strengthen the yen against the dollar, particularly if Ueda’s signals for future rate hikes materialise in December. Read more to discover how recent economic developments are reshaping trading strategies in this insightful article.

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Publication date:

2024-09-27 18:45:34 (GMT)

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