The central bank of Japan has for many years run an offensive line to turn deflation into inflation. Photo: Shuji Kajiyama / AP / NTB
Of NTB | 19.04.2024 02:54:02
Economy and business: The analysts’ forecasts were for inflation of 2.7 per cent for the month of March, compared to the same month last year.
In February, inflation was higher, at 2.8 per cent compared to February the previous year.
Japan, which is the world’s fourth largest economy, has for several years struggled with deflation, i.e. the opposite of price growth. The central bank has therefore implemented a number of stimulus measures over a long period of time to contribute to price increases.
The central bank’s inflation target is 2 percent.
Last month, the central bank raised the key interest rate for the first time since 2007. This marked the end of a negative key interest rate, which the country had had since 2016. The interest rate was raised from -0.1 per cent to the interval 0-0.1 per cent, on the grounds that wage increases in Japan have accelerated.
Next week there is another interest rate meeting at the central bank. Analysts who keep an eye on the central bank’s monetary policy expect interest rates to remain unchanged. But the market expects the central bank to raise the inflation forecast.
(© NTB)