Central Banks

Japan Suzuki: Not at a stage where Japan can avoid the risk of falling back into deflation

By adminPosted on
Time to Read:-words

Japan finance minister Suzuki:

  • Positive development seen in Japan’s economy such as high pay hikes,
    record capex
  • We have not reached
    a stage where Japan can avoid the risk of falling back into deflation
  • As such we cannot
    declare deflation as beaten
  • Cannot comment on
    market moves such as forex, stock prices

These comments indicate Suzuki is likely to be of the opinion that now is not the time for the Bank of Japan to tighten monetary policy.

Just to muddy the water he adds this:

  • Declines to comment on interest rate outlook after ending negative
    rates

More:

  • He is aware of BOJ Deputy Governor Uchida’s comment that easy policy
    will continue after an end to negative rates

This article was written by Eamonn Sheridan at www.forexlive.com. Source