13 Jan 2015
BoJ unlikely to meet its inflation target – AceTrader
FXStreet (Barcelona) - The AceTrader Team notes that Japan’s economics minister has stated that the BoJ is unlikely to meet its inflation target because of price pressures arising out of soft oil prices.
Key Quotes
“Reuters just reported Japan's economics minister said on Tuesday the BoJ is unlikely to meet its inflation target next fiscal year because the collapse in oil prices puts downward pressure on consumer prices.”
“Amari spoke one day after the gov't said it expects overall consumer prices to rise 1.4% in fiscal 2015, well below the BOJ's target of 2% inflation.”
“His comments are the clearest sign yet that the BOJ will either have to expand monetary policy further to meet its price target on schedule, or possibly allow more time for oil prices to rise.”
“"Our forecasts show it will be difficult for the BOJ to achieve its price target due to falling oil prices," Amari told reporters.”
“"Lower oil prices aren't necessarily a bad thing for the economy, but they are a negative factor for the BOJ's price target." It is up to the BOJ to make its own decisions about the outlook for prices, Amari said.”
Key Quotes
“Reuters just reported Japan's economics minister said on Tuesday the BoJ is unlikely to meet its inflation target next fiscal year because the collapse in oil prices puts downward pressure on consumer prices.”
“Amari spoke one day after the gov't said it expects overall consumer prices to rise 1.4% in fiscal 2015, well below the BOJ's target of 2% inflation.”
“His comments are the clearest sign yet that the BOJ will either have to expand monetary policy further to meet its price target on schedule, or possibly allow more time for oil prices to rise.”
“"Our forecasts show it will be difficult for the BOJ to achieve its price target due to falling oil prices," Amari told reporters.”
“"Lower oil prices aren't necessarily a bad thing for the economy, but they are a negative factor for the BOJ's price target." It is up to the BOJ to make its own decisions about the outlook for prices, Amari said.”