Japan Finance Minister Says Economy Near Wage-Driven Inflation, Supporting BOJ Tightening Logic

English summary

Japan's Finance Minister Katayama Satsuki stated that the economy is transitioning to wage-driven persistent inflation and asserted no divergence between the government and the Bank of Japan. This supports the yen and short-term JGB yields, but USD/JPY remains dominated by the US-Japan rate differential, expected to stay range-bound.