BOJ’s Amamiya: Japan's real GDP remains below pre-pandemic levels, keeping inflation subdued
|Bank of Japan (BOJ) Deputy Governor Masayoshi Amamiya made some comments on the Japanese economy and inflation outlook during his appearance on Tuesday.
Key quotes
Japan's consumer inflation may accelerate to around 2% from April but still modest compared with US, Europe.
There is growing chance rises in inflation seen in US, European countries may be sustained.
US, western countries' inflation may return to low levels once pandemic's impact, supply constraints ease.
Japan's real GDP remains below pre-pandemic levels, keeping inflation subdued.
Japan firms' cautious stance toward wage, price hikes also keeping inflation subdued.
We must humbly look at real data to gauge why Japan’s inflation remains lower than that of US, Europe. And whether structural factors are behind this.
Market reaction
At the time of writing, USD/JPY is losing 0.55% on the day to trade at 123.22. The yen met fresh demand, in the face of the Japanese fiscal year-end flows.
The pair is almost 1 big figure down from its daily highs of 124.31, reached after the BOJ conducted unlimited bond buys on Tuesday.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.