Yen Depreciation Sparks Inflation Overshoot Risk as BOJ Minutes Signal 2% Target by Spring

Bank of Japan minutes from the October policy meeting indicate that both business and household inflation expectations have reached around 2%, with officials stressing the need to monitor the risk of renewed price increases. Several members noted that core inflation is gradually accelerating but has not yet hit the 2% target; one official warned that wage growth may need to lift in the spring to achieve the objective, signaling ongoing policy calibration.

In the macro backdrop, yen depreciation could feed higher import costs and push inflation overshoot risks higher, a dynamic that may influence crypto risk sentiment and liquidity conditions. While the BOJ maintains an accommodative stance, investors will scrutinize wage trends and policy guidance for clues on future monetary policy, as traders weigh implications for cryptocurrency markets and cross-asset allocation.