Subscribe To Our Free Newsletter |
Japan Nikkei falls on rate hikes woes
However, market losses capped as the Bank of Japan's key measurements of underlying inflation in April all fell below its 2% target for the first time since August 2022, stoking fresh uncertainty over the timing of rate hike. BOJ Governor Kazuo Ueda has said the central bank will raise interest rates from current near-zero levels if underlying inflation accelerates toward 2% as it currently projects. The data cast doubt on the BOJ's view that price rises are broadening beyond those driven by rising raw material costs, and likely to be sustained backed by robust domestic demand.