Seisaku Kameda, a former chief economist at the Bank of Japan (BOJ) said on Tuesday that the Japanese central bank is expected to upgrade its outlook on inflation later this month, in the face of the sharp decline in the yen.
Key quotes
“Japan’s inflation will be stronger and will last for longer than the Bank of Japan expects now.”
“Inflation is going to clearly top 2% this year.”
“The rapid weakening of the yen is obviously a huge factor.”
Its worth noting that Kameda led the compilation of the most recent quarterly forecast in April.
Market reaction
At the time of writing, USD/JPY is trading at 136.19, adding 0.48% on the day. The renewed uptick in the US Treasury yields and offshore funds buying is underpinning the major amid an underlying risk-on market profile.
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