‘Inflation unlikely to reach 2% even in fiscal 2017’ – BOJ’ Kiuchi

FXStreet (Mumbai) – Bank of Japan (BOJ) Board member Takahide Kiuchi crossing the wires in Asia via Reuters noted that Japan is unlikely to see inflation hit the central bank’s 2 percent target over the next 2-1/2 years as consumer spending remains weak and China’s slowdown hurts export.

He warned further that Asian economies may see growth slow significantly as China suffers from huge slack and US consumer spending remains soft, keeping any rebound in Japan’s economy modest.

Key Quotes:

“Consumer inflation … is unlikely to reach 2 percent even in fiscal 2017”

“I think the price target of 2 percent is well above the level consistent with Japan’s current growth potential.”

“China’s economy has become a risk to Japan’s economy”

“Effectiveness of further easing is very questionable”

Bank of Japan (BOJ) Board member Takahide Kiuchi crossing the wires in Asia via Reuters noted that Japan is unlikely to see inflation hit the central bank’s 2 percent target over the next 2-1/2 years as consumer spending remains weak and China’s slowdown hurts export.

(Market News Provided by FXstreet)