In November 2024, Japan’s “core-core” inflation rate rose to 2.4%, its highest in seven months, potentially prompting the Bank of Japan (BOJ) to consider increasing interest rates early next year. The core inflation rate hit 2.7%, exceeding forecasts. The BOJ recently decided to maintain rates at 0.25%, against expectations for a rate hike, leading to a split in the board’s decision. While some members pushed for an increase due to rising inflation risks, Governor Kazuo Ueda indicated a cautious approach. The yen weakened initially against the dollar following the BOJ’s announcement but later strengthened.
