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The Bank of Japan (BOJ) kept its benchmark interest rate unchanged at 0.25%, with unanimous support from all nine decision-makers.

In its projections, the BOJ expects both economic activity and inflation to grow in the coming months. This widely anticipated decision was announced just hours after August CPI data revealed inflation had reached a 10-month high, driven by improving private consumption.

According to the Japan Statistics Bureau report, Japan’s National Consumer Price Index (CPI) rose 3.0% year-over-year (YoY) in August, up from the previous reading of 2.8%. On a monthly basis, CPI increased by 0.5%, compared to the 0.2% rise in July.

The National Core CPI (excluding fresh food) matched market expectations at 2.8% YoY in August, up from 2.7% in July. Consumer inflation, excluding food and energy prices, climbed from 1.9% to 2.0% YoY in August.

Japan's Gross Domestic Product (GDP) annualized growth rate came in at 2.9% in Q2 2024, below the expected 3.2%. On a quarter-on-quarter (QoQ) basis, GDP grew by 0.7%, missing the 0.8% expectation.

Additionally, Japan's trade balance, on a Balance of Payments (BOP) basis, was ¥-482.7 billion in July, compared to the previous ¥556.3 billion.

Japan's Overall Household Spending rose by 0.1% year-on-year in July, below the 1.2% expected but an improvement from a 1.4% decline in June. Monthly spending fell by 1.7%, missing estimates. 

Meanwhile, the Leading Economic Index slightly exceeded expectations, reaching 109.5 versus 109.4.

Tokyo's Consumer Price Index (CPI) rose by 2.6% year-over-year in August, up from 2.2% in July. Tokyo's Core CPI also increased to 2.4% YoY in August, exceeding both the estimated 2.2% and market expectations.

Japan’s Unemployment Rate unexpectedly climbed to 2.7% in July, higher than both the market estimate and June's 2.5%, marking the highest jobless rate since August 2023.

Japan's Jobs-to-Applicants Ratio stood at 1.24 in July, slightly above the forecast of 1.23.

Japan's Industrial Production in July registered a monthly increase of 2.8%, below the expected 3.6%, but a significant improvement from the 4.2% decline in the previous month.

A powerful typhoon named "Shan Shan" is approaching Japan from the southwest, prompting evacuations on the islands and causing businesses to suspend operations.

The Bank of Japan's Core CPI fell to 1.8% in July, down from 2.1% in the previous month and below the estimated 2.1%.

Additionally, Japan's Corporate Service Price Index (YoY) came in at 2.8% in July, slightly below expectations of 2.9%.

Bank of Japan (BoJ) Governor Kazuo Ueda addressed a parliamentary question on Friday, stating that the Japanese economy is progressing in line with the Bank's price target projections. Ueda also emphasized that he will closely monitor market developments with a sense of urgency, given the ongoing uncertainties.

 He also added, “not thinking about selling long-term JGBs as a tool to adjust interest rates.”

Japan’s National Consumer Price Index (CPI) rose by 2.8% year-over-year in July, unchanged from the previous reading of 2.8%, according to the latest data released by the Japan Statistics Bureau on Friday. On a monthly basis, CPI increased by 0.2%, slower than the 0.3% raise in June.

Further details reveal that the National CPI excluding fresh food increased by 2.7% year-over-year in July, up from 2.6% previously, and in line with market expectations of 2.7%.

CPI excluding fresh food and energy rose by 1.9% year-over-year in July, down from a 2.2% increase in the previous month.

According to Japan's Finance Ministry, July saw a healthy 10.3% increase in exports compared to June's 5.4% growth, though this was lower than the 11.4% growth expected by analysts. However, due to a sharp 16.6% jump in imports—up from 3.2% the previous month and exceeding the 14.9% expected—Japan's trade balance fell from ¥224.0B to a deficit of ¥621.8B in July.

Japan's industrial production rate experienced a sharp decline of 4.2% in June, significantly worse than the expected 3.6% decrease. This drop contrasts sharply with the 3.6% growth recorded in the previous month.

Japan's GDP grew by 0.8% in the second quarter of 2024, surpassing the 0.6% forecast and recovering from a 0.6% decline in the first quarter. On an annual basis, the economy expanded by 3.1% in Q2, a significant improvement from the 2.3% contraction in Q1, and exceeding the 2.1% growth forecast.