Sunday, March 19, 2017

JPY: inflation is still a problem

Central Bank and rates
BOJ short-term interest rate target is at -0.1 pct and 0-year JGB yield target around zero pct. BOJ leaves unchanged pledge to buy JGBs more or less at current pace so its holdings increase at annual pace of around 80 trln yen (USD 700Bn).

Economic Activity
The Japanese GDP growth rate is the slowest in the developed world.

 The manufacturing PMI is at the highest level since 2014.

Inflation is still struggling to break out from deflationary area.

Labor Market
Unemployment is way bellow the pre-crisis level, the economy is at full employment.

Confidence indicates a healthy state.

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