We are witnessing record high wage increases in JapanPolicy board is going to look at the totality of the data as it makes decisionsIt will be done on a meeting by meeting basisReal interest rates are still negativeWill have more data on pass through of wage hikes on prices later in the yearAlso more data on how things are shaping up for next year’s spring wage negotiations
A little more give and take by the BOJ at the moment. On the one hand, they’re claiming that markets still remain somewhat “unstable”. But on the other hand, they don’t want to explicitly rule out further rate hikes. USD/JPY is down 0.2% to 148.95 currently, not doing too much so far on the day.
This article was written by Justin Low at www.forexlive.com.
