BoJ blinked. It said overnight that it won't hike rates in "unstable" markets. This doesn't quite fix the issue. Its focus on the overnight rate just invites future instability. The BoJ should focus markets on what it does with 10-year JGB yield. That's all that matters...
Inflation data have been unusually noisy since COVID. That's partly about residual seasonality and partly about the sheer size of the COVID shock, which is still sloshing through the system. But what is clear is that underlying inflation has slowed massively and is around 2%...