US EditionJapan business mood hits 4-year high, keeps BOJ rate-hike view alive
Big manufacturers’ confidence rose to +15 in December, supported by rising sales prices and strong demand despite concerns about U.S. tariffs and soft consumption.
- On December 15, 2025, the Bank of Japan's tankan showed big Japanese manufacturers' sentiment hit a four-year high, reinforcing expectations of a rate hike next week.
- Rising sales prices and stronger capex plans drove big firms to expect capital expenditure growth of 12.6% in the current fiscal year ending March 2026.
- Survey data revealed the headline index for big manufacturers rose for a third quarter, the index for big non-manufacturers held steady, and the job conditions index showed the tightest labour market since 1991.
- Sources told Reuters that the Bank of Japan is likely to raise its short-term policy rate to 0.75% from 0.5% at its December 18-19 meeting, with board members signaling readiness for a hike.
- Looking ahead, firms worry that business conditions will worsen three months ahead due to higher U.S. tariffs and soft consumption, while analysts expect growth to rebound this quarter despite a recent economic shrinkage.
25 Articles
25 Articles
Associated Press News
Quarterly 'tankan' survey shows slight improvement as Bank of Japan weighs a rate hike
A quarterly survey of major Japanese manufacturers shows business sentiment improving to its best level in four years, even after President Trump raised tariffs on goods from the U.S. ally to a baseline level of 15%.
Japan business mood hits 4-year high, keeps BOJ rate-hike view alive
Big Japanese manufacturers' business sentiment hit a four-year high in the three months to December, a closely watched survey showed on Monday, reinforcing market expectations the central bank will raise interest rates next week.
FXStreet
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