With even some members of the Bank of Japan’s Policy Board expecting inflation to remain well below the 2% target in FY 2015, there is growing speculation about how and when the Board will respond to any shortfall. Our view is that the Board is likely to keep the 2% target, while acknowledging that it may take at least a year longer to hit than originally anticipated. This tweak would probably take place in October 2014 and be accompanied by a further loosening in monetary policy.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services