BOJ may signal underlying inflation has hit 2% goal, sources say

What happened: Sources say the Bank of Japan may signal this month that underlying inflation has roughly hit its 2 per cent target, reinforcing expectations of a December rate hike. Key numbers: 2 per cent inflation target; September rate hike; next policy meeting October 29-30; key rate at a 31-year high; June hike; July report projected target reached between October and March 2028. Why it matters: The signal would reinforce market expectations of a December hike and readiness to raise rates at short intervals, though sources say the tankan took pressure off a back-to-back hike this month.

Sources say the Bank of Japan may signal this month that underlying inflation has roughly hit its 2 per cent target, reinforcing expectations of a December rate hike.

The signal would reinforce market expectations of a December hike and readiness to raise rates at short intervals, though sources say the tankan took pressure off a back-to-back hike this month.