Mr. JGB: Japan's stable inflation target achievable in 2024, but not in the way BOJ thinks

<p>Mr JGB, Michio Saito, says thats its possible the Bank of Japan will achieve its stable inflation target this year, but not exactly in the way the central bank envisages:</p><ul><li>

“Rather than strong demand pulling up wages and prices through a virtuous cycle, the chronic labor shortage will be the main factor” </li></ul><p>Info comes via a Bloomberg report (gated).</p><ul><li>“Japanese long-term yields won’t climb much beyond 1%, even if the Bank of Japan revises its yield curve control program or raises its short-term policy rate,” </li><li>demise of Japan’s negative interest rate won’t be followed by a series of aggressive hikes as seen in the US and Europe</li><li>yields won’t keep shooting up after the initial jump as the central bank will still be offering support for the economy</li></ul><p>Saito was director-general of the Financial Bureau at the Ministry of
Finance and is now an executive fellow at Nomura Institute of Capital Markets Research.</p><p>***</p><p>USD/JPY is back around 145.00 to be very little changed on the session</p><p>The US dollar is a touch lower pretty much across the major's board. DXy:</p>

This article was written by Eamonn Sheridan at www.forexlive.com.