ZCZC
BCN-10
JAPAN-BANK-INFLATION
Bank of Japan lowers inflation forecasts again
TOKYO, Jan 23, 2019 (BSS/AFP) – Japan’s central bank again revised down
its inflation forecasts on Wednesday, in the latest sign of its struggle to
reach a long-sought two percent rate that officials consider key to boost the
economy.
After a two-day meeting the policy board left its mammoth monetary easing
programme in place, as expected, and lowered the inflation forecast for the
fiscal year ending March next year to 0.9 percent from 1.4 percent.
It said the decision to revise down the forecast was guided in part by a
decline in oil prices.
The revision in its quarterly report follows a previous downwards revision
in late October. The bank had already dropped a 2020 target date for
achieving the long-standing 2.0 percent rate.
The BoJ has struggled for years to reach its target and has defended its
decision to maintain its monetary easing even as other central banks tighten
policy.
It blames a “deflation mindset” caused by consumers and employers used to
long periods of low growth and deflation.
The bank also slightly lowered the inflation forecast for the current
fiscal year ending March 2019 to 0.8 percent from 0.9 percent, and reduced
the projection for the year ending March 2021 to 1.4 percent from 1.5
percent.
Those figures do not factor in the effects of a consumption tax hike
expected to go into effect in around October.
BSS/AFP/HR/0950