{"id":73987,"date":"2026-11-02T02:08:20","date_gmt":"2026-11-02T06:08:20","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/boj-signals-december-rate-hike-amid-persistent-inflation-s-oil-navigates-supply-crises\/73987\/"},"modified":"2026-11-02T02:08:20","modified_gmt":"2026-11-02T06:08:20","slug":"boj-signals-december-rate-hike-amid-persistent-inflation-s-oil-navigates-supply-crises","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/boj-signals-december-rate-hike-amid-persistent-inflation-s-oil-navigates-supply-crises\/73987\/","title":{"rendered":"BoJ Signals December Rate Hike Amid Persistent Inflation; S-Oil Navigates Supply Crises"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>The Bank of Japan (BoJ) has effectively signaled a rate hike to 1.5% in December<\/strong>, declaring victory in its 14-year battle against deflation as core inflation remains above its <strong>2% target<\/strong>.<\/li>\n<li><strong>S-Oil (<a href=\"\/stock\/010950\">010950<\/a>) warns of a global lubricant supply crunch lasting into 2027<\/strong>, driven by Middle East geopolitical tensions and the closure of the <strong>Strait of Hormuz<\/strong>, which has sidelined <strong>44% of U.S. Group III base oil supply<\/strong>.<\/li>\n<li><strong>Yamaha (<a href=\"\/stock\/7272\">7272<\/a>) has withdrawn from the Qatar MotoGP race<\/strong> scheduled for November 8, citing safety concerns in the Middle East, a move that could trigger contractual penalties from the <strong>FIM<\/strong>.<\/li>\n<li><strong>South Korea&#39;s government is in compensation talks with refiners<\/strong> like S-Oil (<a href=\"\/stock\/010950\">010950<\/a>) over losses from a domestic fuel price cap, with refiner losses estimated to be nearing <strong>\u20a98 trillion<\/strong>.<\/li>\n<\/ul>\n<p>The <strong>Bank of Japan (BoJ)<\/strong> has all but confirmed a December interest rate hike, with Governor <strong>Kazuo Ueda<\/strong> indicating that the central bank is ready to move its policy rate to <strong>1.5%<\/strong>. This hawkish shift follows a period where Japan&#39;s core inflation reached <strong>2.1%<\/strong> in September, consistently exceeding the bank&#39;s long-term target. While the December move appears &quot;locked in&quot; for many analysts, uncertainty remains regarding the &quot;neutral rate,&quot; leaving the 2027 outlook clouded as the bank navigates its first tightening cycle in decades.<\/p>\n<p>In the energy sector, South Korean refiner <strong>S-Oil (<a href=\"\/stock\/010950\">010950<\/a>)<\/strong> reported a massive <strong>513.7% jump in Q3 operating profit<\/strong>, reaching <strong>\u20a91.41 trillion<\/strong> ($1.0 billion). Despite these strong earnings, the company warned that the global lubricant market faces severe structural deficits. The <strong>Strait of Hormuz<\/strong> disruption has effectively halted exports from major Persian Gulf producers, pushing <strong>Group III base <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a><\/strong> from a pre-crisis <strong>$3-$4 per gallon<\/strong> to over <strong>$13 per gallon<\/strong> by late 2026.<\/p>\n<p>Simultaneously, <strong>S-Oil (<a href=\"\/stock\/010950\">010950<\/a>)<\/strong> and other South Korean refiners are negotiating with the Ministry of Trade, Industry and Energy regarding compensation for the government-imposed fuel price cap. The government is reportedly considering a &quot;cost-based formula&quot; to settle losses incurred during the first half of 2026, with disbursements expected between <strong>November and December<\/strong>. This comes as the fuel price cap has been credited with lowering domestic inflation by approximately <strong>0.6 percentage points<\/strong>.<\/p>\n<p>Geopolitical instability continues to spill over into global sporting events, as <strong>Yamaha (<a href=\"\/stock\/7272\">7272<\/a>)<\/strong> announced its withdrawal from the upcoming <strong>Qatar MotoGP<\/strong> at the <strong>Lusail International Circuit<\/strong>. The manufacturer cited company-wide travel restrictions due to the regional conflict, despite assurances from <strong>MotoGP<\/strong> organizers that the event remains safe. The withdrawal has created a &quot;sporting crisis&quot; for the series, as other manufacturers and riders now face pressure to follow suit or risk competing under heightened security threats.<\/p>\n<p>On the diplomatic front, Chinese President <strong>Xi Jinping<\/strong> has called for &quot;collective action&quot; to protect regional stability. During recent instructions on the <strong>Peaceful China Initiative<\/strong>, Xi emphasized a holistic approach to national security and the need to mitigate global risks. His remarks underscore Beijing&#39;s attempt to position itself as a stabilizing force amid the ongoing energy and logistics shocks currently rattling the Asian and Middle Eastern markets.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The Bank of Japan (BoJ) has effectively signaled a rate hike to 1.5% in December, declaring victory in [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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