There were hopes that core CPI for Japan was to fall below the BOJ’s 2% target, given Tokyo’s annual rate of core CPI slowed to 1.6% y/y (1.9% expected). Yet it was not meant to be, with core CPI at the rate of the BOJ’s target of 2% y/y. It was at least slower than 2.3% y/y previously, yet a Reuters poll estimated a drop to 1.8%. CPI is still above their BOJ’s target at 2.2% y/y, and clearly fresh food and energy remain a sticking point for consumer prices having risen 3.5% y/y. It therefore seems unlikely the BOJ will want to hike rates as soon as Q2 with some measures of inflation remaining elevated. Besides, ... (full story)