Japan’s Scrapping of Utility Subsidies to Push Inflation Higher

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Japan’s plan to phase out utility subsidies is likely to push inflation toward 3% over the summer, potentially complicating the Bank of Japan’s thinking on the path of interest rate hikes.

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Goldman Now Sees BOJ Scrapping Negative Interest Rate TuesdayGoldman Sachs Group Inc. now expects the Bank of Japan will raise interest rates for the first time since 2007 at Tuesday’s meeting, after stronger wage outcomes and a number of news articles over recent days suggested a move is afoot.
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