BOJ's ultraeasy policy under pressure as inflation hits 40-year high

Nov 19, 2022 | News On Japan

TOKYO - The Bank of Japan faces mounting pressure to adjust its ultraloose monetary policy following October price data showing inflation significantly above its 2% target, with some market watchers predicting a tightening within a year.

Japan's core consumer price index, which excludes volatile fresh-food prices, increased 3.6% on the year in October -- the fastest clip in 40 years. The recent rise in prices has been "significant," BOJ Gov. Haruhiko Kuroda told the lower house Financial Affairs Committee on Friday.

The BOJ had predicted an inflation rate of 1.1% for fiscal 2022 back in January. It upgraded the forecast to 1.9% in April, then 2.3% in July, then 2.9% in October.

The central bank also raised its fiscal 2023 forecast to 1.6% in October, closer to its 2% target, in an upgrade that drew significant market attention. Kuroda has recently adjusted his language to hint at the possibility of an exit from monetary easing, saying that conditions are starting to line up and that inflation is approaching the BOJ's goal.

In a monthly economic survey published Nov. 10 by the Japan Center for Economic Research, 28 of 33 economists predicted a monetary tightening in the future. Eleven said the tightening will happen within the next year.

Still, Kuroda publicly remains committed to large-scale easing. He said Friday that inflation will still fall short of 2% in fiscal 2023, reiterating previous forecasts. ...continue reading

Tropical Depression Expected to Develop Into Typhoon No. 18

A tropical depression developing near the Chuuk Islands is expected to become a typhoon by the evening of August 19 before continuing to strengthen over unusually warm waters and reaching the vicinity of the Mariana Islands as a strong typhoon by August 23.

Moss-Covered Healing Forest Draw Visitors

After 10 p.m., the clouds that had covered the sky above Shirakoma Pond gradually began to clear, revealing countless stars and the Milky Way rising vividly over the mountain lake in Nagano Prefecture's Northern Yatsugatake range.

Fire Breaks Out at Sairinji Temple in Saga

A fire broke out at Sairinji temple in Saga city on the morning of August 18, engulfing the building in flames and prompting the dispatch of 10 fire engines and two ambulances, with no injuries reported so far.

Flood Damage Cripples Chiba Transport

Severe disruption continued across Chiba Prefecture after the holiday period, with rail closures forcing some commuters into three-hour journeys while more than 2,700 vehicles remained immobilized by flooding caused by last week's torrential rain.

Obon Return Rush Jams Stations, Airports and Expressways

Train stations, airports and expressways were crowded on August 16 as travelers returned from vacations and hometown visits on the final day of the Obon holiday.

MEDIA CHANNELS

MORE Business NEWS

Selling 'Dead Weight Real Estate" for 1 Yen!?

Real estate company Rewrite has built a business around properties that owners struggle to give away, sometimes listing them for just 1 yen in a strategy that produces virtually no immediate profit but can generate lucrative deals years later through referrals and repeat customers.

Don Quijote's Profit Tops 100 Billion Yen for First Time

Pan Pacific International Holdings, the operator of Don Quijote discount stores and other retail businesses, posted net profit of 110.1 billion yen for the year through June 2026, up 21.6% from a year earlier and exceeding 100 billion yen for the first time.

Niigata New Rice Prices Fall 40%

JA Zen-Noh Niigata decided on August 18 to set its advance payment for standard Koshihikari rice from the 2026 crop at 18,500 yen per 60 kilograms of brown rice, about 40% lower than a year earlier as inventories continue to build.

Pacific Bluefin Tuna Quota to Rise 25%

An international meeting on Pacific bluefin tuna resource management reached agreement on August 18 to raise the catch quota for large fish in the western and central Pacific by 25% while reducing the quota for smaller fish by 6%, a shift that could eventually lower prices for the prized tuna used in high-end sushi and sashimi.

Japan's Long-Term Yield Briefly Hits 2.945%, Highest in About 30 Years

Japan's benchmark long-term interest rate briefly rose to 2.945% as government bonds were sold on August 18, reaching a fresh high not seen in about 30 years as uncertainty in the Middle East pushed up crude oil futures and fueled expectations that inflation could accelerate.

Nikkei Recovers 69,000 as AI Shares Defy Weak GDP

Tokyo stocks rose on August 17, with the Nikkei 225 closing at 69,220.25, up 506.45 points, as buying in artificial intelligence and semiconductor-related shares outweighed weaker-than-expected economic growth, rising bond yields and renewed concern over household spending.

Japan GDP Grows for Third Straight Quarter

Japan's economy expanded for a third consecutive quarter in the April-June period, with real gross domestic product rising 0.3% from the previous three months, equivalent to an annualized increase of 1.1%, according to preliminary data released by the Cabinet Office.

Nikkei Recovers 69,000 as AI Shares Defy Weak GDP

< 2 3 4 5 >