BOJ reaffirms that underlying inflation is rising moderately towards 2% level

The Japanese central bank speaks out more on inflation in a research note Composite indicators on medium-to-long-term inflation expectations show a gradual increase towards 2%Underlying inflation must be judged comprehensively by examining a wide range of informationIf recent rise in food prices were to persist, they could exert sustained upward impact on consumer pricesThe output gap has been… Composite indicators on medium-to-long-term inflation expectations show a gradual increase towards 2% Underlying inflation must be judged comprehensively by examining a wide range of information If... Composite indicators on medium-to-long-term inflation expectations show a gradual increase towards 2% Underlying inflation must be judged comprehensively by examining a wide range of information If recent rise in food prices were to persist, they could exert sustained upward impact on consumer prices The output gap has been on an improving trend Labour market remains extremely tight and wages are rising moderately Firms are continuing to pass on higher wages… For traders, releases like this can quickly shift rate expectations, currency direction, index futures and broad risk sentiment. Watch the next move in the dollar, front-end yields and index futures to see whether the market prices this release as a true surprise or only a passing headline.