This wave of anti-inflation efforts has lasted for 4 years. By 2023, in a high interest rate environment, inflation data has already shown a clear decline. As we approach 2026, it’s unreasonable to still be selling inflation stories in the market. Frankly, isn’t this just a way to prolong the life cycle of yen arbitrage?

The key point is—this time, the Bank of Japan is really going to gradually raise interest rates, which directly cuts off the arbitrage space. Look at the CPI data starting to decline, this is not a coincidence. Market insiders must have already grasped the data trends in advance. Even if the official CPI release is later than Japan’s rate hike decision, they have long seen through the trend.

In other words, the era of continuing inflation narratives to maintain arbitrage windows is being suppressed by the reality of the rate hike cycle. The data will speak.