More on Japan's CPI data earlier - may force more BOJ action

Some commentary on the inflation data and the BOJ.

ICYMI:

• Japan CPI data for May: Headline inflation 0.7% y/y, in line with expected
• Recap of the Japanese CPI data - more pressure builds on the BOJ to act
• SG on the Bank of Japan - on hold ... until 2021

Daiwa

• "If companies cannot translate rising costs to households, core consumer inflation could slow to around 0.5% to 0.6% in the latter half of this year
• The BOJ may respond to negative developments in overseas economies in July by changing its forward guidance and pledging to keep ultra-low interest rates longer"

Norinchukin Research Institute

• "The BOJ may be forced to take action if the yen comes under upward pressure, as European and U.S. central banks are leaning toward more accommodative monetary policies"