UBS(US:UBS) Sou Hu Cai Jing·2025-12-24 07:24Core Viewpoint - UBS indicates that the gradual interest rate hikes by the Bank of Japan and the moderate rate cuts by the Federal Reserve are unlikely to lead to a significant decline in the USD/JPY exchange rate [1][2]. Economic Indicators - UBS expresses concerns regarding Japan's fiscal budget, noting that the latest forecasts suggest a persistent basic fiscal deficit, although the debt-to-GDP ratio may decrease [1][2]. - The firm is monitoring upcoming data releases, including the Tokyo Consumer Price Index (CPI), industrial production, and wage data [1][2]. - It predicts that the Tokyo core CPI will slow from an annual rate of 2.8% in November to 2.6% in December due to a decrease in electricity prices, while the core CPI is expected to remain at 2.8% [1][2].