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Daofu Global: Unexpected rise in Japanese inflation adds to strong macroeconomic data
Jinshi data on December 20th, Krishna Bhimavarapu, Asia-Pacific economist at Dow Jones Global Investment Management, said that the unexpected rise in Japan’s inflation rate in November came after a pump in food prices, adding a stroke to the strong macroeconomic data development since the last quarter. On Thursday, the Central Bank of Japan kept its policy interest rate unchanged, but hinted at continuing its loose policy based on data and other developments. Bhimavarapu believes that the result of the Bank of Japan is a shift to dovishness, which means that the yen may remain weak for a longer period of time. The economist said that this in turn may rekindle inflation by raising import prices and put the policy of the Bank of Japan back on track for normalization.