Fed Rate Hike Bets Cool While BOJ Rate Hike Wagers Heat Up Following Inflation Data

Money-market expectations for a September Federal Reserve rate hike have softened after Wednesday's U.S. CPI data largely met expectations and July nonfarm payrolls were softer than anticipated. Conversely, expectations for a September rate hike by the Bank of Japan (BOJ) have strengthened following Thursday's Japanese wholesale inflation data, which showed a 7.2% year-on-year rise in July, indicating persistent price pressures.