...but now finds itself in a tight spot, if it does not raise rates, Yen would likely continue to depreciate threatening higher imported inflation and lower purchasing power.
...if it raises, it threatens a JPY bond market implosion and an unwinding of the JPY carry trade that could cause market turmoil.
....thankfully, a lower Japanese CPI print means BoJ can continue with the easiest and safest course of doing nothing. But that too could end when we get 160 to the dollar.
YEN WEAKENS PAST 156 AGAINST THE DOLLAR AFTER BOJ Japanese Lira imploding
