ING: Inflation May Reshape Bank of Japan's Rate Hike Plans

According to Odaily, Japan's CPI data will be released ahead of Friday's interest rate decision, and it is expected that the data will show a significant decline in the inflation rate for December. Analysts at ING stated that if inflation eases, it may prompt the Bank of Japan to reconsider its future rate hike plans. "Strong wage growth and government support measures will keep the core inflation rate above 2%. Once the Bank of Japan confirms that the core inflation rate will remain above 2% and higher than the overall inflation rate, it is likely to take its next step sometime in the second half of 2026." (Golden Ten Data)