The Japanese yen is hit by a new wave of devaluation against the US dollar. The current USDJPY quote is 140.05.
Goldman Sachs investment bank revised its inflationary expectations for Japan, increasing them. They are now even higher than the forecast of the BoJ. In fact, a decrease in the CPI below 2% for the coming months has been excluded.
Meanwhile, the BoJ is not likely to take any steps towards changing the credit and monetary policy on Friday. The monetary strategy might be adjusted at the meeting in July when the CB will update its inflationary forecasts. Inflation in Japan at the end of the fiscal year is expected to reach 2.8% against the previous forecast of 1.8%. The Goldman Sachs forecast is for consumer prices excluding fresh food.
At the same time, the latest statistics are far from these ambitious expectations. The Corporate Commodity Price Index (CGPI) rose by only 5.1% in May compared with April's reading of 5.9%. Investors have little faith in the potential of the BoJ since the JPY is falling again.