Japan’s headline inflation reaccelerated, and the core inflation indicates signs of stickiness around 4.2%.
Still, the Bank Of Japan (BoJ) remains adamant about tweaking or abandoning the Yield Curve Control (YCC), leading to a massive rally in the USDJPY pair.
The move out of the ultra-loose policy will likely coincide with the rate cut in the US (which is still some time away: higher for longer?). As a result, further depreciation will increase the inflationary pressures in Japan.
I hope it doesn’t get out of control and BoJ acts before it’s too late.
#economy #markets #Investing #japan #inflation
