UBS on the CPI information from Japan yesterday:

Japan’s January client value inflation information slowed, however the slowdown was much less marked in companies.
This was due to international vacation costs—Japanese shoppers are following the developed financial system development of prioritizing enjoyable.
The drivers of inflation numbers are comparatively few, making a sudden charge enhance by the Financial institution of Japan unlikely, however the modest nature of the inflation slowdown retains alive prospects for a later charge enhance.

Whereas I concur with UBS on the inflation information pointing to no close to time period charge enhance from the BOJ I’m cautious of behind the scenes political pressures on the Financial institution that power their hand.

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