If need be, they can allude to core prices in the CPI report still being above the 2% mark. But they certainly can't say the same about their own measures of underlying inflation now. The trimmed mean reading in particular has fallen to 1.8% in April, down from 2.2% in March. The last time that the trimmed mean reading was below the 2% mark was back in August 2022.
And it was always going to be a case of the BOJ facing a race against the clock in trying to exit its ultra easy monetary policy.
After having took the first step in March, this latest data today is a massive setback in justifying further moves. I wouldn't go as far as to rule out any further rate hikes this year. But the timing of things and the way the narrative is developing, is not helping the BOJ whatsoever.
