BOJ to Decide Next Week Whether Inflation Has Hit 2% Target

The BOJ's symbolic judgment on whether inflation has durably hit 2% matters less for the headline number than for what it implies about the end of Japan's deflationary era, a shift with deep implications for yen funding markets and global carry trades. For crypto and RWA markets, the key transmission channel is liquidity: a BOJ that formally declares victory over deflation is a BOJ edging toward policy normalization, which could tighten the world's cheapest source of leverage. Whether the BOJ actually makes that call next week, and how it frames the durability of inflation, is the open question worth watching.