Japan's Core Inflation Exceeds BOJ Target, Increasing Likelihood of December Rate Hike Amid Fed Expectations

Japan's core inflation rose above the Bank of Japan's (BOJ) 2% target in September, with Core CPI (excluding fresh food) reaching 2.1% from 1.7% in August, and an index stripping out fuel rising to 2.4% from 1.9%. This strengthens the case for a BOJ rate hike in December, following a September hike to 1.25%, as many analysts expect a hike to 1.50% in December. Concurrently, the Federal Reserve (Fed) is also expected to move, with CME FedWatch data showing an 80.5% chance of a higher Fed target range by December 9. These dual central bank decisions could impact Bitcoin through the yen carry trade, with BTC trading at $81,293 at press time, having lost 5.6% over the past month.