Yields of Japanese short-term government bonds hit a two-week-high. As for the yields of super-long governmental bonds, it has recovered after the monthly low. This is happening because the core consumer inflation in Japan is now the highest it has been in 40 years.
The core CPI rose by 3.6% year-on-year. It confirms the fact that inflation is higher than the central bank's target of 2%. Such a situation continues for the second month in a row.
Data shows that Japanese companies increase prices for goods and consider deflation less and less.
BOJ doesn’t follow the world trend of tightening monetary policy. It applies the most unexpected stimuli to support the economy.
According to the main macro strategist of Sumitomo Mitsui Asset Management Masayuki Kichikawa, if inflation continues to rise, people will have more reason to think about changing monetary policy.