Japan core inflation remains below BOJ target for fourth month, complicating rate hike plans

Japan core inflation remains below BOJ target for fourth month, complicating rate hike plans

Japan's core CPI hit 1.3% in May, falling below BOJ's 2% target for the fourth consecutive month. Lower-for-longer BOJ policy extends yen weakness and sustains Japanese institutional capital outflows seeking yield globally, keeping bond valuations elevated—material for tech firms refinancing in dollars.