With economic activity recovering and underlying inflation holding up, the recent strengthening of the yen and the plunge in the Nikkei are unlikely to force the Bank’s hand at next week’s meeting. However, underlying inflation looks set to moderate and the upcoming spring wage negotiations are likely to result in subdued pay hikes. Against this backdrop, we still think that more easing will be needed in coming months.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.