Japanese inflation won’t shift BOJ

Wednesday, 21 September 2022

This matters because it keeps pressure on JPY and therefore CNY and AUD. I agree. But what a brilliant signal for the inflation top it would be if BOJ YCC broke! Pantheon with the note.

Japanese inflation reached an eight-year high in August, but we don’t expect a response from the BoJ.

Inflation continues to evolve broadly in line with the central bank forecast, which envisions a quick cooling of inflation in early 2023. In the interim, we expect Governor Kuroda will again point to the cost-push nature of inflationary pressures, and emphasise the unsustainable nature of current above-target inflation.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.