Pond: Central Banks Can't Convince Markets on Inflation

The transcript discusses the challenges faced by central banks in managing inflation expectations. It highlights the discrepancy between market pricing and central bank targets, particularly in the context of the five year forward inflation rate. The impact of external factors like OPEC's decisions on oil prices is also examined. The Bank of Japan's strategy to exceed its inflation target is discussed, emphasizing the market's skepticism about central banks' ability to achieve their goals.

Discuss the challenges central banks face in convincing markets about their inflation strategies.

What was the significance of the Bank of Japan's announcement regarding their inflation target?