Possible scenario
BOJ Tightening Repriced
45% Chance
Tokyo inflation beating forecasts reinforces the view that price pressures remain above the Bank of Japan's comfort zone. Markets bring forward expectations for another BOJ rate increase, especially after prior yen weakness and record currency support.
Initial impacts
- Market volatility Up
- 10-year Treasury yield Up
- US dollar Down
Secondary impacts
- Finance +1.0%
- Consumer Cyclicals -0.7%
- Industrials -0.6%
- Technology
Portfolio impact
S&P 500-0.3%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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