-
USD/JPY: Japanese disinflationary pressures build casting doubt over future BOJ hikes
Prospects for a sustained lift in inflationary pressures in Japan looks to be slowly slipping away, unless large wage increases from employers can permanently boost aggregate demand. Because looking at the trajectory for price pressures right now, it’s difficult to see the virtuous cycle between higher wages and inflation continuing beyond the short-term. Be it headline or underlying price pressures, both are experiencing deep disinflation, casting doubt over the ability for the Bank of Japan to deliver more than the one rate hike already delivered. Japanese disinflation intensifies: Consumer price inflation slowed ... (full story)