ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

BOJ wavers on more easing as prices flag

The Bank of Japan's policy board is set to meet on July 28-29.

TOKYO -- The Bank of Japan faces the tricky decision of whether to loosen monetary policy further at next week's policy board meeting, with some officials hesitant to play the central bank's few remaining cards despite investor hopes and stubbornly weak price growth.

The key question is how to interpret lackluster inflation. The consumer price index excluding fresh food has fallen steadily, moving further away from the 2% growth the BOJ is trying to achieve. This past spring yielded disappointing wage and price hikes. The BOJ plans to cut its inflation outlook for this fiscal year from the current 0.5%.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more