JPY: inflation is still a problem

Summary

 

  

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

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.

Consumer

Confidence indicates a healthy state.