Japan’s core inflation slowed to its weakest in about two years in June, underlining policymakers’ long battle to boost consumer prices and adding to speculation the Bank of Japan could deliver more stimulus later this month.
The Bank of Japan is expected to maintain its massive stimulus program on Thursday and signal its readiness to ramp up monetary support if growing risks such as the escalating US-China trade war threaten the economy’s modest expansion.
An inflation gauge closely watched by the Bank of Japan (BoJ) accelerated at its fastest pace in almost three years as some retailers passed on rising costs to households, a positive sign for the central bank as it seeks to stoke consumer prices.
Bank of Japan Governor Haruhiko Kuroda said on Friday the central bank was ready to expand monetary stimulus if needed, brushing aside the view the BoJ had little ammunition left to fight the next economic downturn.
The Bank of Japan (BoJ) is expected to cut its inflation forecasts at next week’s rate review, sources say, a sign slumping oil prices and a darkening global economic outlook are heightening challenges for hitting its ambitious two percent target.
Worried by prospects of a pause in the US interest rate hike cycle, the Bank of Japan is shifting focus towards a risk that it may be forced to deploy more stimulus this year to stop sharp yen rises from derailing an economic recovery, sources say.
Japan’s annual core consumer inflation ticked up in September but remained at half the pace of the central bank’s elusive two percent target, underscoring the challenge of meeting the price goal as escalating trade frictions cloud the economic outlook.
Japan's annual core consumer inflation ticked up slightly in August but remained distant from the central bank's two percent target, suggesting that monetary policy will stay ultra-loose for the time being.
The Bank of Japan is likely to cut its inflation forecasts for this fiscal year and the year to March 2020 at a meeting later this month with price pressures remaining stubbornly weak, people with direct knowledge of the bank’s thinking said.
Japan's central bank is likely to wait longer than initially expected to exit its super-easy stimulus, a Reuters poll of economists showed with almost half predicting that it won't happen until 2020 or later given sluggish inflation.
The new Bank of Japan leadership won't be able to raise interest rates this year as the central bank missed the best opportunity to do so in 2017, former BoJ board member Sayuri Shirai said on Wednesday.
The Bank of Japan kept monetary policy steady on Tuesday and offered a slightly more upbeat view on inflation expectations, underscoring its conviction the economy is making slow but steady progress towards its elusive two percent price target.
Japan's central bank is set to roughly maintain its price forecasts at its policy meeting next week and blame stagnant inflation on factors like corporate efforts to boost productivity, signaling that it will hold off on expanding stimulus for the time being.