Japan releases CPI report this Friday and BoJ MPC take place the following Friday. Economists at OCBC Bank analyze JPY ahead of these events.
There is an economic case for making a policy shift
We believe the meeting is ‘live’ as there is an economic case for making a policy shift.
Core-core inflation (strips away fuel and food) is now running at over 40-year high of 4.3% and both nationwide and Tokyo CPIs show that price pressures are broadening.
Another firmer CPI print should support JPY strength ahead.
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