- Feels that BOJ must respond to the fact that headline inflation has exceeded 2% for a while now
- Initial fear over impact of tariffs has diminished
- Tankan report indicates tariffs have not caused significant slowdown in Japan’s economy
- Expects Japan’s consumption to continue increasing moderately
- Was particularly worried about risk of big market volatility from US tariffs
- But US economy has averted a downturn and yen is weakening rather than strengthening
- Conditions are falling in place where second-round effects of inflation could broaden
This article was written by Justin Low at investinglive.com.
