BOJ Summary of Opinions: Chance of inflation hitting 2% target next year is low

Omkar Godbole FXStreet Contributor

The Bank of Japan (BOJ) Summar of Opinions at the monetary policy meeting on September 20/21 shows the policy makers believe the odds of inflation hitting the 2% target next year are low.

Key points

Needs to ease policy further to prop up demand given the expected impact on the economy from a scheduled sales tax hike (makes Yen a sitting duck in rising global rate environment).

Careful attention needs to be paid to whether the increasing trend in China's producer price index [PPI] suggests that the worldwide disinflationary trend will change.

No logical reason why North Korea tensions should lead to the appreciation of the Yen.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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