The Bank of 今日吃瓜 declaration last week that its 2% inflation target has finally and definitely been met was greeted with muted celebration and a modicum of skepticism.
Despite years of waiting, the market took the announcement in stride and focused on what crossing that threshold really means.
“It’s not like that alone will act as a tailwind for the Japanese economy,” said Yuichi Kodama, chief economist at Meiji Yasuda Research Institute. “The focus from now on will be whether the BOJ can keep 2% inflation in a stable manner and whether wage growth will catch up.”
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