Capital Economics: Japanese economic data may incline the Japanese Central Bank to stand pat

FX data on July 26th, Kit Joo Macro said that the data released this week may support the view of the Japanese Central Bank to stand still for a longer period. Although the bank believes that the Japanese Central Bank will raise the Intrerest Rate policy to 0.3% next week, only one-third of analysts surveyed by Rufu expect to raise interest rates, and the financial market also believes that the possibility of raising interest rates by 20 basis points is one-third. Kit Joo Macro Asia-Pacific director Marcel Thieliant said the weak Tokyo CPI may prompt the Japanese Central Bank to take no action. He added that continuously pumping consumer prices means that real wages will continue to decline. However, despite the slowdown in this indicator, service sector inflation continues to expand. It is expected that with the cooling of energy inflation and the rise in wages, real disposable income will truly rise in the second half of the year.