BOJ Summary of Opinions: Chance of inflation pick-up towards 2% as price hikes broaden

The Bank of Japan (BOJ) published the ‘Summary of Opinions' of its January meeting on Monday, with the key takeaways noted below.

"There's a chance year-on-year growth in consumer inflation may briefly approach 2per cent. If that happens, what's important is to look at facts behind the rise and whether they're sustainable." 

"Consumer inflation may temporarily reach levels of around 1.5per cent in the first half of 2022. Whether that momentum is sustained enough for inflation to stably approach the BOJ's 2per cent target would depend on wage and inflation expectations – or in sum the strength of demand." 

"Many companies are now having to drop their traditional view that prices will keep falling, and change the way they set prices.”

"It will be difficult to achieve the BOJ's price target by the end of fiscal 2023.”

  • USD/JPY tracks downbeat Treasury yields to stay pressured below 114.00 ahead of Fed

About the Author

You may also like these