More on the BOJ Tankan and what firms’ inflation expectations mean for the BOJ

The second part of the Tankan was out earlier – the focus on this part is CPI:

In brief while firms expect inflation over the next months and years, their their expectations are unchanged from the Q4 survey and still falling way short of the BOJ goal of 2%.

For example, expectations for 3 and 5 years into the future are for 1.1%, barely over half way to target.

Which means …. there will be no exit from QQE and loose policy by the BOJ while the 2% target remans in place.

If you’d like more, rtrsReuters  have recap: 

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.