Data showed consumer prices in the region’s biggest economy fell marginally in August, coming in slightly below market expectations, but that was not enough to reverse bets on an interest rate hike by the central bank at its meeting next week.
Traders still priced in a 96% probability that the local central bank could hike borrowing costs by 25 basis points to 10.75% later in the month. 0#BCBWATCH
“A premature loosening of monetary policy could risk a return to double-digit inflation as seen in 2022, a scenario still fresh in the minds of many,” said Albie Manderson, FX risk manager at Deaglo.
