The US labour market showed signs of a steady slowdown in October, with job openings increasing moderately and layoffs declining, according to the latest Job Openings and Labor Turnover Survey (JOLTS) report released by the Bureau of Labor Statistics on Tuesday. Job openings, a key indicator of labour demand, rose by 372,000 to 7.744 million at the end of October. However, the September figures were revised downward to 7.372 million from the initially reported 7.443 million. Economists polled by Reuters had anticipated 7.475 million vacancies. Labour Market Dynamics While job openings increased, hires dropped by 269,000 to 5.313 million, and layoffs fell by 169,000 to 1.633 million. These figures suggest a gradual cooling of the labour market rather than a sharp contraction. Hurricanes and strikes also impacted October’s labour market data. Rebuilding efforts in storm-affected regions and the resolution of strikes at Boeing and another aerospace company are expected to contribute to a ...
The Bank of Japan (BOJ) is expected to keep its benchmark interest rate unchanged at 0.25% during its upcoming meeting, as political uncertainty following Japan’s election and the upcoming US presidential election create elevated risks. Governor Kazuo Ueda and the BOJ board are likely to adopt a wait-and-see approach given the instability, according to economists surveyed by Bloomberg.
The recent Liberal Democratic Party (LDP) election loss and ongoing global uncertainties have reduced the likelihood of a rate hike this year. However, some experts still anticipate a possible move by January 2025, with 53% expecting action as early as December.
The yen's weakness, coupled with inflation staying above the BOJ’s 2% target, has led to speculation about potential rate increases to address imported inflation. However, political instability has raised the threshold for such a move in the near term.
The BOJ will also release its quarterly economic projections, with attention on whether the central bank will adjust its inflation outlook or maintain its current stance.
Despite uncertainty, Japan's inflation and wage growth have been aligned with the BOJ’s forecasts, keeping the possibility of a future rate hike on the table.
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