BoJ is Committed to Tackle Inflationđ
Other normalizing recoveries include Japan, where the BoJ October minutes sent an extremely clear message that major policy changes are not expected in 2022, echoing Governor Ueda's recent comments that they have no appetite to tighten policy at least until 2Q24. The central bank would like to see further wage inflation in 2024 to rise and catch up to the rise in CPI before contemplating any change in policy. As such, the JPY is likely to remain on the backfoot against most majors, and JGB bears will likely have to begin their winter hibernation early and return well after spring before any fireworks can resume.
