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Transcript
Inflation in Japan has been on the rise - it’s driven by a weaker currency and higher energy prices. That’s now feeding into higher wages.
A sustained rise in inflation underpinned by wage
Preparing For Japan Central Bank Shift
Summary
- The Bank of Japan looks set to change its ultra-loose policy as inflation takes root. We see spillover risks to global yields, risk appetite and Japanese stocks.
- Global stocks fell last week and U.S. Treasury yields rose across the curve as markets partly priced out Federal Reserve rate cuts later in the year.
- The U.S. CPI is due this week. The December core CPI was revised up sharply last week, showing it hadn’t slowed nearly as much as first reported.
Jean Boivin, PhD, is head of economic and markets research at the Blackrock Investment Institute. Prior to joining BlackRock, Dr. Boivin served as deputy governor of the Bank of Canada and as Finance Canada’s associate deputy minister and G7/G20 deputy. He has taught at Columbia Business School and HEC Montreal. He writes about the global economy, global markets and policy.