Japan's Tankan Survey Sentiment Index Surges to +22, Highest Since Global Financial Crisis

According to Capital Economics, Japan's Bank of Japan Tankan survey released on July 1 strengthens the case for rapid rate hikes. The overall sentiment index for large manufacturers surged to +22, marking the highest level since the global financial crisis. Sentiment among large non-manufacturers climbed further to +37 from +36 in the previous quarter. Additionally, enterprises' inflation expectations for the next five years increased to 2.6% from 2.5%, supporting views within the Bank of Japan that warn of upside risks to inflation.
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