Japan’s budding inflation expectations put BOJ in policy bind

TOKYO — After decade of battling deflation, the Bank of Japan is on the brink of achieving its target of stable 2% inflation. But its task is being complicated by the government’s efforts to ease the strain on households.

The key is inflation expectations — what people expect inflation to be in the future. If more people expect prices to rise, then prices are more likely to actually rise.




Source link

WORLD NEWS