BOJ faces rate dilemma as inflation dips below 2% but energy shocks loom

Core inflation falls again, yet oil and geopolitics threaten it

Japan’s core inflation slipped under the Bank of Japan’s 2% target for a second straight month in March, aided by subsidies and softer food prices. But the underlying trend remains firm, while rising oil costs and geopolitical risks could reignite price pressures. That mix is leaving policymakers cautious on the timing of future rate decisions.