Nomura’s Japan economics team's economic forecasts assume that the yen will continue to depreciate against the US dollar as a result of the widening gap between US and Japanese interest rates, and that the price of crude oil will edge higher.
Key Quotes
“There has been evidence of weakness in US price inflation, and we see a risk of a slowdown in the pace of monetary tightening. In addition, crude oil has been trading at a low level. Although we expect Japan's inflation rate to continue to pick up in the near term even if the yen appreciates against the dollar from time to time or the price of crude oil fails to rise, we see an increasing risk that it may undershoot our inflation forecasts, especially next year.”
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