Japan prime minister Takaichi: We cannot say that Japan has emerged from deflation

Recent inflation driven by food prices, could hurt the economyWill work closely with BOJ to ensure Japan sees inflation driven by wagesHopes for BOJ to conduct policy so that Japan sees sustainable achievement of price targetWith the wrong policies, there is a risk Japan can slide back into deflationAnd that will then hurt consumption, wage growth, and capexThe government’s job is to create an environment where firms can continues with strong wage hikesShe’s being rather explicit in trying to corner the BOJ here, especially with that remark on adopting the “wrong policies”. Oof. It’s tough to see how the BOJ would want to push forward with their next rate hike now with December surely off the table. USD/JPY continues to reprice higher in a push to 154.75 currently, up 0.4% to its highest since February.
This article was written by Justin Low at investinglive.com.