Tokyo's Inflation Slows, Currency Monitoring

Tokyo's core consumer price index (CPI) is expected to show a slowdown in inflation, with a decrease in energy and food price increases. The Bank of Japan is likely to maintain its ultra-loose monetary policy. Japan's finance minister is closely monitoring currency movements, particularly the yen's decline against the dollar. Asia-Pacific markets rose as Japan's December inflation numbers showed the headline inflation rate dropping to 2.6% and the core inflation rate falling to 2.3%. The Bank of Japan's monetary policy meeting is set to take place on January 22, and the central bank is expected to decide on monetary policy with increased fiscal stimulus potentially pushing up Japanese inflation in the near-term.