BoJ Outlook Report: weak JPY pushes up prices for a wide range of good services, thereby giving a bigger boost to core consumer inflation; impact of a weak JPY shock is bigger than that of oil shock

Newsquawk StaffOil newsPublished 30 Apr 2026, 05:25 UTC

Newsquawk headlinesUTC

Every headline is on the live feed 20 minutes before this site.

Go live — 7 days for $29.99

Go live — 7 days for £24.99

Go live — 7 days for €29.99

05:30

French GDP Growth Rate YoY Prel (Q1) Y/Y 1.1% (Prev. 1.2%)

05:30

French Household Consumption MoM (Mar) M/M 0.7% vs. Exp. 0.7% (Prev. -1.4%)

05:05

BoJ Outlook Report: weak JPY pushes up prices for a wide range of good services, thereby giving a bigger boost to core consumer inflation; impact of a weak JPY shock is bigger than that of oil shock

05:00

Japanese Consumer Confidence (Apr) 32.2 vs. Exp. 33.1 (Prev. 33.3)

04:56

BASF (BAS GY) Q1 2026 (EUR): adj. EBITDA 2.36bln (exp. 2.24bln), Revenue 16bln (exp. 16bln), Net 0.927mln (prev. 808mln), EPS 1.06 (prev. 0.91). Sales declined slightly amid strong adverse FX effects and "slightly" lower prices. Maintains FY26 guidance.

On the Newsquawk feed at 05:05, 20 minutes before this page.

Use the PlatformFree. No signup, no card.

"...while a yen depreciation shock tends to lead to a rise in the GDP deflator through wage increases and greater profit margins, an increased crude oil price shock tends to cause a decline in the GDP deflator through compressed profit margins and wages, reflecting worsened trading gains...In the current phase, it is possible that both shocks could occur at the same time..."

Context

The BoJ's Outlook Report indicates that the depreciation of the yen is exerting upward pressure on core consumer inflation more effectively than crude oil price increases. This suggests a potential shift in inflation dynamics that might influence monetary policy considerations, particularly regarding interest rates and the Bank of Japan's future actions to stabilize the currency and inflation.

External

Newsquawk Daily

Get both market opens in your inbox.

FX · last 90 days

Recent headlines that moved markets

FX/14 Oct · 12:30 UTC

US Core CPI (Sep MM) 0.3% vs. Exp. 0.2% (Prev. 0.3%).

- USD/JPY, after we published+0.3%

FX/8 Oct · 08:30 UTC

Fed’s Waller (voter) says more rate hikes are likely needed to tame inflation, but there is flexibility over the pace and hikes do not need to be consecutive.

DXY, after we published+0.1%

FX/5 Oct · 11:16 UTC

Japan's GPIF didn't discuss allocation at its September meeting, Bloomberg reports.

Market, after we published+0.1%

FX/29 Sept · 18:00 UTC

Fed's Williams (voter) says sees no need for urgency after Sept rate hike.

- DXY, after we published−0.2%

FX/29 Sept · 05:32 UTC

[PRESS CONFERENCE] RBA Governor Bullock says inflationary pressures to last longer than expected; inflation is driven by domestic capacity pressures; Board will raise rates again if needed.

AUD/USD, after we published−0.6%

FX/28 Sept · 07:56 UTC

Japanese FX Official Mimura says they are closely watching to see if markets take the clear message they are giving at face value. Not satisfied with or reassured by recent JPY action.

Following the commentary USD/JPY, after we published−0.5%

Newsquawk Daily

Get both market opens in your inbox.

This note and the other one — the EU open and the US open, every business day, written by the desk. No account needed.

Make Newsquawk a preferred source on GoogleSelect this to see Newsquawk more often in Top Stories when you search Google.

Free.

No signup, no card.

Use the Platform

Related headlines

The feed had this first.

Use the Platform