Kai Investment Macro: Core CPI in Japan jumps, providing reasons for interest rate hike in December

According to the data from Jinshi on November 22nd, Marcel Thieliant, Chief Economist of Kapitall Macro Asia, stated that the rebound in Japan’s basic inflation in October will prompt the Central Bank of Japan to raise interest rates next month. He pointed out that the strong core inflation index, coupled with the recent rebound in consumer spending and the weakening of the yen, has significantly increased the bet on the further interest rate hike by the Central Bank of Japan. Market expectations for a rate hike by the Central Bank of Japan in December have soared from almost 0% a few weeks ago to 60% now.