ood morning everyone!

It’s becoming increasingly challenging to keep up with everything happening these days. There’s so much going on, and it’s all unfolding rapidly. Nevertheless, here are some key morning reflections to kickstart the day:

Yesterday, we delved into the predicament the Bank of Japan is facing with soaring inflation. Since then, there have been rumors of potential adjustments to their inflation projections, following their intervention to purchase 10-year JGB’s.

Any potential alterations to both inflation targeting and monetary policy could have adverse effects on the markets. Up until this surprising policy tweak this summer, the Bank of Japan had been hoping to see the global disinflation trend make its way to Japan, but this has yet to materialize significantly.

Now, with US CPI showing signs of increasing and as we await the eurozone’s CPI data later today, the situation remains uncertain

Chart 1: Inflation Cycles, US, EZ & Japan