Reuters Tankan sentiment index for big manufacturers +6
- first positive reading this year
- is expected to rise further, to +8, in August
Service-sector index 25
- hit its highhest this year
- seen at 24 in August
The solid readings may further fuel speculation that the BOJ may embark on normalising its easing policy sooner rather than later. Offsetting this of course is Bank of Japan Governor Ueda repeatedly saying that inflation, supported by wage hikes, needs to track at a sustainable rate of 2% before the bank could consider an exit move.
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The Reuters tankan report is monthly and is aimed at pre-empting the Bank of Japan’s own tankan report, which is quarterly
- It polls around 500 large- and mid-sized non-financial companies
jpy
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