The Bank of Japan considers monetary policy with import prices up 46.3% YoY but consumer prices only up 2.5% YoY - The MUFG Global Markets Podcast

Japan remains in mourning after the shock of former Prime Minister Abe’s shooting. Recently USDJPY made new highs and JPY basis widened slightly while 10Yr JGB yield has stayed just below the upper band of the BoJ’s target. Despite the depreciation of the Yen exporter operations have not strengthened because of supply chain constrictions, while the impact on import prices has been significant. The culprit behind the rise in USDJPY has been net imports in the resource account while foreigners’ Yen short positions have not changed much.

In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido shares his views ahead of the Bank of Japan’s July meeting. He also discusses inflation in Japan and shares his views on Dollar/Yen, Yen rate, and Yen basis.

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