Commerzbank’s Volkmar Baur says solid nominal growth and higher-than-expected inflation should keep pressure on the Bank of Japan (BoJ) to raise rates again as early as September or October. Alongside a potentially improving fiscal outlook, these factors support a modestly stronger Japanese Yen (JPY) despite continued market caution after recent interventions.
Higher inflation keeps BoJ under pressure
“The Japanese economy grew by 0.3% in real terms in the second quarter compared to the previous quarter, which was significantly slower than most analysts had expected. In nominal terms, however, the economy grew by 1.2% compared to the previous…
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