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Japan's core inflation rate is higher than expected, increasing the likelihood of the Bank of Japan raising interest rates in July.
Jin10 reported on May 23 that Min Joo Kang, a senior economist at the Dutch International Group for South Korea and Japan, stated in a research report that Japan's core inflation rate is higher than expected, increasing the possibility of a rate hike by the Bank of Japan in July. The inflation rate is expected to remain above the Bank of Japan's target of 2.0%. After a potential rate hike of 25 basis points in July, the Bank of Japan may hold steady for a considerable period due to the high uncertainty surrounding U.S. tariffs.