http://www.bbc.com/news/business-30939747
According to the article, Bank of Japan's Governor expressed his opinion on Japan's goal of reaching 2% inflation would not be able to achived this year. Governor Kuroda thinks one more year is what Japan needs before reaching that level of inflation. One of the reasons for his deduction is the current low oil price that is affecting Japan heavily as the country does not produce any oil by itself but mostly importing. However he believes growth will soon to kick in and discussion about raising wages to match the expected level of price rise should be considered soon.
Japan's trouble in recent years has always been deflation, thus explaining why Shinzo Abe has been continuously trying to weaken the Yen to increase price level. I think the economic depression that happened last year was a surprising big hit to their economy, although I agreed with Shinzo Abe's approach and believe that Japan will soon reach their target of 2% inflation, although it might take longer than what Kuroda has anticipated.
Japan's trouble in recent years has always been deflation, thus explaining why Shinzo Abe has been continuously trying to weaken the Yen to increase price level. I think the economic depression that happened last year was a surprising big hit to their economy, although I agreed with Shinzo Abe's approach and believe that Japan will soon reach their target of 2% inflation, although it might take longer than what Kuroda has anticipated.
No comments:
Post a Comment