Japan: Strong doubt that BOJ can even achieve the 2% inflation target - Rabobank

Michael Every, Head of Financial Markets Research at Rabobank, notes that today has already seen Japanese CPI, where headline was 0.1% y-o-y vs flat expected and Tokyo 0.5% vs. 0.2%: nonetheless, ex food and energy the national picture was 0.2% and in Tokyo 0.0%.

Key Quotes

“As Bloomberg quotes a Japanese retailer, “No one is buying the BOJ’s new commitment. There is strong doubt that the BOJ can even achieve the 2% target and the name ‘overshooting commitment’ itself is hard to understand for ordinary people.” Indeed. “Overshooting commitment” is the kind of terminology only understood by economists, who in turn don’t understand why ordinary people are so unhappy with the global economy.”