BoJ preview: a still negative neutral rate calling for pause notwithstanding weak Yen
Alicia García Herrero (Natixis) | After the Bank of Japan (BoJ) terminated the key non-conventional monetary policy tools in March, namely the negative policy rate and the yield curve control (YCC), evidence on a strengthening virtuous circle between inflation and wages has been limited. However, real wages -which fell by -1.8% year-on-year in February – are unlikely to turn positive soon. Furthermore, services inflation excluding imputed rent softened to +2.9%…