Will yen rout make BoJ budge?

Many G10 central banks have signalled aggressive rate hikes, but the Bank of Japan has stuck to its ultra-accommodative policy stance. Could that be about to change? Japan’s headline consumer price inflation (CPI) index has climbed above the 2% target for the first time in seven years. While higher food and energy prices have been the dominant driver, with core elements remaining subdued, there is evidence of a broadening of price pressures.