BOJ, Japan, China discussed on Bloomberg Daybreak Asia


He can now start to refocus on the economy, helping to improve things there. And that will start to show up probably in the first quarters of next year rather than this year. Yeah, you mentioned a minute ago that's going to be a while, perhaps before inflation becomes a topic of conversation in China, but it's forcing its way onto the agenda in Japan, that those October CPI numbers 3.7% were now well beyond what the BOJ was looking for. When are we going to see some policy change coming out of Japan? Well, according to BOJ chief Corona, it's the wrong kind of inflation. He wants to see inflation driven by a rising wages rather than imported costs. So he keeps on going on about his speaking again today and he's retaken the same thing is that he wants to see a significant increase in domestic wages in Japan, which isn't happening yet. And he says that once that is sustainable, then he can consider changing policy. Really, his explanation is a lot of the inflation you're seeing Japan is really a function of the Japanese yen when the yen was so weak, recently got as high as a 152 against the U.S. dollar. That caused so much of the inflation in Japan that you're seeing in the CPI numbers now. And the yen is still relatively weak on the long-term basis. So until he gets what he wants in terms of wages, he doesn't look as though he's going to change his mind. Although of course, bear in mind, he will step down in the first part of next year and there'll be a new BOJ chief. Yeah, that's going to be an interesting moment. Indeed, the EM one 40 against the dollar right now very quickly mark what to hit for the dollar. Bumpy ride. It's going to be a bit choppy. I think it's reasonable that good chance we're seeing the higher for this year. But we've got a lot of speakers. We've got one more third meeting, our CPI. There's lots of things that can move the dollar around quite actively in the next few weeks. Yeah, it's going to be an interesting few weeks as we count down to the end of the 2022 and what a weird year it has been. My cranfield Bloomberg M live

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