Nikkei touches 70,000 as BOJ prepares to declare 2% inflation

· Economy · Japan

The Nikkei 225 touched 70,000 for the first time in three months, as Japanese equities extended gains. The Bank of Japan is set to express its view that underlying inflation has reached 2% as early as Oct. 30 in its next quarterly Outlook for Economic Activity and Prices report, sources said. The declaration would mark a milestone for the central bank's long effort to escape deflation and could shape expectations for interest-rate policy.

Why it matters：A formal BOJ recognition of 2% inflation could signal a shift toward higher rates, affecting global bond markets and the yen.

Key points

  • The Nikkei 225 touched 70,000 for the first time in three months.
  • The BOJ may declare underlying inflation at 2% on Oct. 30.
  • The view would appear in the quarterly Outlook report.

Sources (original reporting)

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