Japan faces moment of truth on inflation

The Bank of Japan is fighting an increasingly lonely battle. So far it has outperformed speculators testing their resolve to keep interest rates low. But the market is betting that a sinking yen And Rising inflation will eventually be forced to surrender.

condition that japanese central bank Will follow its peers and rate hikes this year have fallen flat despite increasingly strong inflationary winds. Futures on 10-year Japanese government bonds fell 1.4% last week, but bounced back this week after the Bank of Japan bought a record 9.24 trillion yen in government bonds last week, according to CEIC. Central bank reiterated its so-called yield curve control policy To cap the 10-year bond yield at 0.25% in last week’s policy meeting.