From the Bank of Japan June meeting summary, this bombshell:
- There is strong chance consumer inflation will moderate, but won’t slow back below 2%, toward middle of current fiscal year
If inflation is going to remain above target why not cut back on super-easy policy?
More from the text (link to the full thing in that post above):
- Although the rise in raw material prices has paused, firms’ pass-through of cost increases to
their selling prices has intensified further, the employment and income situation has improved,
and inbound tourism demand has recovered. Given this, inflationary pressure is likely to
remain strong for the time being
This seems very significant, what do the ForexLive traders think? In the comments please.
USD/JPY has drooped, but not by much. If the Bank of Japan pivot there are big figures lower to come. Many big figures.
This article was written by Eamonn Sheridan at www.forexlive.com. Source