BOJ Branch Managers Signal Rate Hike Ahead as Economic Outlook Strengthens on July 9

According to Jin10 Data, on July 9, the Bank of Japan's branch managers reported the economy remained robust despite geopolitical risks and rising oil prices, strengthening the case for near-term rate hikes. The BOJ noted that while supply chain disruptions and material shortages have pressured exports and production, replacement sourcing strategies and route adjustments have reduced risks of sharp economic decline. Overnight index swap markets are currently pricing in at least one rate hike by year-end.
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