This week’s producer price and wage data show that inflationary pressure in Japan remains firm. That should set the stage for the Bank of Japan to pick up the pace of policy tightening. Meanwhile, the yen's recent rally suggests that fundamentals may be asserting themselves once again. We think further appreciation is likely over the medium term, notwithstanding the potential for near-term setbacks.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.
