The Bank of Japan in no hurry to end negative rates after Tokyo’s core CPI ex-food and energy fell by -0.1% m/m SA (-0.3% NSA) this month.
– Extends the move away from peak in the summer
– Issue is Spring wage negotiations
The JGB 2-year was slightly dearer in the aftermath. At issue is whether Spring wage negotiations add to last year’s strong wage gains and translate into enough momentum in core inflation going forward to offset what may be maturing forces that previously drove greater pass-through effects into underlying inflation.