Singaporean Prime Minister Lawrence Wong has urged the public to remain calm and united following a knife attack on Father Christopher Lee , a priest at St Joseph’s Church in Bukit Timah on Saturday. In a social media post, Wong expressed his shock and sadness over the attack, emphasizing that violence has no place in the country. He also called for support and solidarity, stating, "We must uphold the safety and sanctity of our places of worship." The incident occurred during the 5:30 pm Mass , when a 37-year-old Singaporean Sinhalese man , armed with a knife, attacked Father Lee. Fortunately, several parishioners managed to disarm the suspect before he could cause further harm. The assailant, who has a history of serious offenses and drug-related crimes, was arrested by police. Preliminary investigations suggest the attack was not terrorism-related, and the suspect acted alone. Father Lee is currently receiving treatment at National University Hospital and is in stable co
Japan's Core Inflation Rises, But Demand-Driven Growth Falls Below 2%, Complicating BOJ's Rate Decisions
Japan's core inflation accelerated for the third consecutive month in July, with the nationwide core consumer price index (CPI) excluding fresh food items rising 2.7% year-on-year, slightly above the 2.6% increase in June. This marks the 28th straight month that inflation has remained at or above the Bank of Japan's (BOJ) 2% target. However, the slowdown in demand-driven price growth, reflected in the "core core" index, which excludes both fresh food and energy costs, dropped to 1.9%, complicating the BOJ's decision-making process regarding further interest rate hikes.
Key Takeaways:
Inflation Dynamics and Central Bank Challenges: The core CPI's increase is largely attributed to the phasing out of government subsidies that had been keeping household utility bills lower. However, the slowdown in the "core core" inflation suggests that demand-driven price pressures are easing. This presents a challenge for the BOJ as it balances the need to sustain inflation above its 2% target with the reality of weakening demand-driven growth.
BOJ's Tightening Stance Under Scrutiny: The BOJ surprised markets in July by raising interest rates to a 15-year high, signaling its readiness to continue tightening monetary policy if inflation continues on a sustainable path towards the 2% target. However, with the "core core" index slipping below 2%, the central bank's next steps are less certain, especially given the yen's recent rebound and the potential for slowing inflation due to lower import costs.
Market Reactions and Future Outlook: The BOJ's hawkish tone has had significant market repercussions, with the yen strengthening and Tokyo stocks experiencing a sharp sell-off. Governor Kazuo Ueda, while reaffirming the BOJ's readiness to raise rates again if needed, also emphasized the importance of closely monitoring market developments given the current financial instability. With Japan's economy showing stronger-than-expected growth in the second quarter, there is growing speculation that the BOJ might raise borrowing costs again by the end of the year, as indicated by a recent Reuters poll where 57% of economists supported this view.
As Japan navigates the complexities of its inflation dynamics, the BOJ's cautious approach to monetary policy will likely be influenced by upcoming economic data and market conditions, keeping investors and economists closely watching for further signals.
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