NewsNovo
Japanese inflation is rising again, and the Bank of Japan is under mounting pressure to act on rates in September.
The yen is weakening even after joint intervention, which puts the central bank in the position of defending a currency with tools that have not held while the inflation case for a rate increase builds on its own.
The pressure is coming from both sides Rising inflation and a weakening yen are usually enough, separately, to make a central bank's rate calculus uncomfortable. Together, they compress the timeline.
Joint intervention signals that authorities have already moved to defend the currency through coordination.
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