Reuters Tankan sentiment index for major manufacturers +6
- first positive reading this year
- expected to increase further, to +8, in August
Service sector index 25
- reached its highest level this year
- seen at 24 in august
The strong readings could further fuel speculation that the BOJ may embark on normalizing its easing policy sooner rather than later. In return, of course, Bank of Japan Governor Ueda has repeatedly stated that inflation, supported by wage increases, must follow a sustainable 2% rate before the bank can consider an exit.
The Reuters tankan report is monthly and aims to outpace the Bank of Japan’s tankan report, which is quarterly
It surveys around 500 large and medium-sized non-financial companies
This article was written by Eamonn Sheridan at www.forexlive.com.
Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.