• 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
Source: Investing Live