If need be, they can allude to core prices in the CPI report still being above the 2% mark. But they certainly can’t say the same about their own measures of underlying inflation now. The trimmed mean reading in particular has fallen to 1.8% in April, down from 2.2% in March. The last time that the trimmed mean reading was below the 2% mark was back in August 2022.
And it was always going to be a case of the BOJ facing a race against the clock in trying to exit its ultra easy monetary policy.
After having took the first step in March, this latest data today is a massive setback in justifying further moves. I wouldn’t go as far as to rule out any further rate hikes this year. But the timing of things and the way the narrative is developing, is not helping the BOJ whatsoever.
This article was written by Justin Low at www.forexlive.com.If need be, they can allude to core prices in the CPI report still being above the 2% mark. But they certainly can’t say the same about their own measures of underlying inflation now. The trimmed mean reading in particular has fallen to 1.8% in April, down from 2.2% in March. The last time that the trimmed mean reading was below the 2% mark was back in August 2022.And it was always going to be a case of the BOJ facing a race against the clock in trying to exit its ultra easy monetary policy.After having took the first step in March, this latest data today is a massive setback in justifying further moves. I wouldn’t go as far as to rule out any further rate hikes this year. But the timing of things and the way the narrative is developing, is not helping the BOJ whatsoever.
This article was written by Justin Low at www.forexlive.com. Read MoreNews
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